Tips you should follow before investing in financial markets

10 Tips You Should Follow Before Investing In Financial Markets

Many people see investing in financial markets as very difficult and complex, so they use financial advisors when they invest, believing that their competence and knowledge is the only way that will help them make the right investment decision.

Of course, no one can invest simply. He must look, learn and acquire the knowledge necessary to invest his money in the financial markets successfully, but of course it is not that difficult.

To be able to invest your money successfully, you should look at the most important aspects to consider before embarking on any investment decision, as well as the most important factors that increase the chances of success and profit for anyone considering investing in the stock market .

"Investment is a process that needs patience and its results show up in the long term. A successful investor knows that it may take several years. Investing in financial markets in the short term may be very volatile," Dunma said. People who seek profit in a short period of time are actually speculators and not investors, and most of them lose their money. In the short term, short-term markets may behave in a random way, subject to rumors and the psychology of dealers affected by fear and greed

The following are the most important tips and economic tools in the world of investment and business, the more able a businessman or investor to use these factors efficiently and as much as possible of those factors in his investment was closer to financial success through investment.

 

1. The availability of a clear vision

The first step after identifying the target sector, which is based on economic considerations and analytical studies, is that both investors and businessmen will then look for business companies with clear strategic visions. This will help to invest in a clear environment.

2 - leadership competencies and human resources excellence

Leadership efficiency and human resources are key to the success of any company and play a strategic role for every aspiring company.

3. Active and promising sectors

Investment in these sectors is recommended. The active and promising sectors of our time include companies that rely on knowledge revolution and technology such as smart devices, computers and other products that rely on knowledge and technology.

4. High dividend ratio per share

This is one of the most important technical factors, as it is of great importance in determining and measuring the size of expected dividends per share. Each share is a great asset for all investors and is one of the clear economic signs of the company's success and growth, so high-yielding companies with more than 25% are the focus of attention for investors and analysts.

5. The average size of the capital

This tool can be explained by a study through which more than 100,000 shares of various companies in the market were analyzed in a practical step to track the promising stock moves. The results of this study show that the behavior of the shares of companies that have exceeded annual growth and distribution rate of 27%, the average capital of these companies is about 200 million dollars. After the 10-year study period, the average capital of these leading companies was estimated at $ 4.2 billion. If the potential opportunities for growth of medium-cap companies were very high and remarkable. Therefore, those who want to invest in it should focus on this type of companies.

6 - Repeated profitability at 18 times

The P / E measures the ratio of the share price to its annual profit. The higher the EPS, the higher the price per unit of profit, and vice versa. The P / E is one of the most widely used stock metrics because of its ease of calculation and simplicity.

7. High market share

The investor should look for highly competitive companies in the market where their competitiveness can be measured by the company's market share standard. The importance of this component shows the size of sales of the company or institution for the total size of the target market including all competitors. Therefore, this criterion shows the ability of companies to compete in the presence of a highly competitive market. Therefore, investor knowledge of the market share of the target company is one of the most important tools to measure the success of companies and the ability of their executive management to compete and change.

The studies conducted to examine the market share and the importance of taking the law of repeaters profitability of competing companies. The results of the study showed that the average companies promising growth and distributions were 18.9 times at the beginning of the investment.

8. Leading companies

According to this advice, those who want to invest in the financial markets must take care of the leadership element in the companies that have a pivotal role in providing distinctive products to customers, and that one aspect of their investments is clear in this direction.

9. Institutions of promising countries

These companies are comprehensive in the field of successful investment through the recognition of executive management within companies and commercial establishments, in addition to taking into account the importance of vertical and horizontal expansion, at the level of countries and at the level of geographical expansion. Emerging and emerging countries are the focus of smart companies, where their market is unsaturated and thus the growth opportunity is great in these markets.

10. Expansion companies

This is another example of the success and progress of the business in the sense that the company has an expansionary work plan at the horizontal level by opening new branches from one period to another. This will activate and stabilize the company and confirms its ability to overcome the obstacles of the market and thus compete with other companies. So we have to take this into account when we invest in such companies.

Finally, no doubt every one of us wants to become rich in the short term, but it is not simple. Do not expect your money to double in age unless you invest in high risk assets such as small companies. But in this case has turned from an investor to a racket. As you may know, most speculators lose their money.

 

Finally, we have offered you 10 tips to follow before investing in financial markets. We hope you have benefited from this article.