Quality of Stocks Vs Quantity of Stocks

Most new investors to stock market buy shares that cost less. What they don’t understand is that it is quality of stocks that matters and not the quantity. You can buy thousands of cheap stocks with your savings but you won’t make any profit with these stocks. Real money is made from good quality of stocks when held for a long time.

How to Buy & Sell Shares

How to Buy & Sell Shares

Most investors with limited money think that they should buy more cheap shares than fewer high quality expensive shares. This is completely wrong approach to share market investment. The problem with cheap shares is that they don’t go up. Neither such companies pay good dividend. Also such shares are very difficult to sell at profit.

Most share trading experts and stock market professionals will advice to buy shares of a good company even if it costs more. Diversify your portfolio with good stocks. You decrease your risks and increase your chances of making profit with good quality stocks. It is also important to allocate enough time to the stock to grow.

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