Sharemarket: advice for first-time investor?

Question

Any advice someone experienced in the field could give me?

Before investing in a company's shares, what factors should I take into account?

Answer 1

losses hurt a lot more than a similar size gain feels good.

thus, your job is to avoid losses, or at least significant losses, as if they're the plague.

the problem is that if you get hurt badly, you'll quit the game, possibly forever. and you just can't get ahead without taking some equity risk [unless you're so well paid that the issue is moot].

There is a lot to learn.

As a first timer, I'd advise you to refuse to bet until you're certain the company's shares can't go down any farther AND have begun going back up. THEN {and VIP} set a hard stop loss order [good til cancelled sell if the shares fall to predetermined level] at about 2/3rds the loss that you think you can emotionally handle.

Market betters are frequently wrong. Your stop loss will be hit at least 2 times out of five [you'll sell out].

If/when your shares go up, raise your stop loss order by an equal amount.


GL

Answer 2

PE is the first thing to look at. Know the company's products.

You might want to create a "practice" portfolio to follow your favorite stocks at http://www.top10traders.com - it's free - each month the site ranks the best performing investors.