Things to know before you trade

First and foremost, know your risk appetite.  If you are low risk, medium risk, high risks, there is a stock screener which you can use to select stocks based on your risk profiling.

Secondly, after knowing which category of risk profiling you are, select stocks based on instrinsic value, P/E  ratio, history and strategy of companies as well as the management. Why isvthis important? If you have good products and bad management with bad strategies, then chances of growth is unlikely. What we want to buy is cheap, good and growth companies.

Thirdly, diversify your money into different sectors. If you are teaching your children to invest, start with REGULAR SAVINGS PLAN for a start. If you are a newbie or seasoned or professional trader, then the companies you choose will be different depending on which category you are in.

Fourthly, you can also invest in dividend stocks if you want the stock to appreciate but at the same time collect some side income. Do note if you buy US Companies there is a withholding tax by the US government.  If you buy SG stocks, then do calculate if it is worthwhile or not. For example, some reits pay quarterly while STI ETF pays twice yearly. If you add up the dividend multiply by the same amount, which is better? Eg. 0.002x 4 (quarterly) x 5 times (value of stock), if yhe stock is 0.40 compared to STI ETF is 3.246. When you multiply it, does it give you more than STI ETF or lesser?

Fifthly, BUY WITHIN YOUR MEANS. DONT BORROW FROMMLOAN SHARKS OR ILLEGAL COMPANIES. DONT USE YOUR MONTHLY EXPENSES MONEY TOO ANDLET YOUR FAMILY SUFFER. Have spare cash of about 30% of your salary or assets in the bank. This is for emergency uses in case recession and mkt crash.

Finally, be wise and prudent in investing.

Happy Investing :)