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It’s not a bad idea to look for investment tips if you’ve just been bitten by the entrepreneurship bug and you’re itching to invest your hard earned money in the stock market. There’s always a risk in any business so it’s important that you know how to manage them. I’ve been browsing the net latey and here are the investing tips that most of the experts suggest.

1. Choose stocks over bonds.

Stocks outperforms bonds over time when it comes to returns. The average returns from bonds, annually, is 10% compared to the 5-7% with bonds. Other advantage in investing in stocks is after holding them for more than a year, you will only be taxed 15% if you decide to sell them. Income from a savings account or CD could be taxed as much as 35% annually.

2. Have a stock investment strategy.

Know the amount of money that you need to have to achieve your goals and the know length of time that it will require to achieve them. It’s also important that you know how much risk you are willing to take so when things don’t go according to plan and the investment tips that you’ve read don’t work, you don’t lose control of your investment and your money.

3. Don’t put all your money out there in the beginning.

Start investing  in small pieces and monitor the market’s movement very closely. Weather you win or lose money, you don’t lose all your life savings upfront and  stop your learning experience with the stock market.

4. Analyze the competition.

Get to know as many businesses as you could before entering the business because it will give you a tremendous advantage.  It’s important that you know the financial characteristics of the companies that you will be competing with.

5. Know when to sell stocks.

It’s a good idea to sell your stocks if the company’s debt is growing very quickly. You might also want to consider selling them if there’s a fast rising competitor that could gravely hurt the company’s profitability.

6. Have a business mentor.

By learning from the experiences of those people who have actually done the business weather they’ve failed or earned will save you some from commiting the same mistakes that they’ve done when they were just starting. It’s always wise though to sorround yourself with winning people and ask them for investment tips whenever you get the chance.

Read how does the stock market work to learn more.