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Asked 8 years ago

What are the things first time investors should know?

Finance & Business
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Ramesh Kumar
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Honestly, there are 100s of instructions and suggestions that first time investors must keep in mind. After all, it matters their hard-earned money. However, there are few that deserve a noteworthy mention.

First, you must remember that investing your money in any avenue won’t make you an overnight millionaire. It will take time to increase in value. So you must have the patience to wait. Plus, you must be ready to be in this game for years.

Next thing you must always remember is that you can lose all your money if you’re not careful. Yes, even when you have the best strategy and expert by your side, you can never succeed in predicting the market movements. You can always lose your money. So never invest money that you cannot afford to lose.

Third, don’t get dragged into day trading, unless you know the tricks of the game. Be an investor. Hold your money through thick and thin. Don’t trade for the sake to make few pennies. The risk reward ratio in trading is not in your favor.

Fourth, learn technical analysis. Remember, you will only be as good and successful as your technical knowledge. It is imperative that if you want a rich, high-rewarding and sustainable portfolio, you must know how to do technical analysis. So spend time in learning it. Take relevant online courses, watch videos and read articles from reliable resources.

These are few important things new investors must always keep in mind. Good luck!

Prreeti Radhika Taneja

Answered By Prreeti Radhika Taneja

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Updated on05/21/26
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First-time investors should understand that investing is usually a long-term process, not a get-rich-quick scheme. It is important to learn basic concepts like risk, diversification, SIPs, stocks, mutual funds, and market volatility before investing money.

Beginners should avoid putting all their savings into one stock or blindly following social media tips. Starting small and investing consistently is often considered safer. Having an emergency fund before investing is also important because markets can go up and down anytime. Many experts also suggest focusing on fundamentally strong companies or index funds in the beginning. Honestly, patience, discipline, and learning from mistakes matter much more in investing than trying to make quick profits overnight.

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Answered By Ved Tiwari

Two decades of chartered accountancy — turning complex financial and business realities into writing that professionals and decision-makers can actually use.
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Ved Tiwari is a Chartered Accountant (CA) and finance writer with over 20 years of professional experience in taxation, auditing, financial planning, and business advisory. He is a Fellow Member of the Institute of Chartered Accountants of India (ICAI) — one of the most rigorous professional qualifications in Indian finance — and holds a Bachelor of Commerce (B.Com Honours) from Shri Ram College of Commerce (SRCC), Delhi University. His content covers personal finance, corporate taxation, GST, investment strategy, business compliance, financial planning, and India's evolving regulatory and economic landscape. His work has appeared on platforms including Moneycontrol, The Economic Times Wealth, and CA Club India, where he writes for finance professionals, business owners, and informed readers who need content built on two decades of real-world financial practice — not surface-level commentary. Over 20 years, Ved has advised hundreds of businesses and individual clients on taxation, audit compliance, and financial restructuring. He has handled complex multi-crore audits, represented clients before tax authorities, and guided startups and established firms through India's regulatory environment. He has published 400+ articles on finance and business, spoken at ICAI seminars and industry finance conferences, and is a practising member of the ICAI Western Region chapter. Across all his writing, every figure is verified, every regulatory reference is current, and every recommendation reflects the same professional standard he applies to his clients — because in finance, accuracy is not optional.

Answered on05/13/26
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