The financial industry has definitely seen better days, and the state in which it finds itself now makes it more risky than usual to trade and invest in. The reason behind this situation is simple — years of COVID-19, consequences of money printing during the pandemic, geo-political tensions such as the war in Ukraine, tensions involving Taiwan, and more.
All of this reflects negatively on the business world, which means that it is reflecting negatively on the stocks of businesses. Now, experienced traders will be fine because they know what to invest in, what is strong enough to survive this period, and what may be too risky. They are aware of trends and they have the resources to do thorough research on the global market and get accurate results.
However, the situation is quite different for beginner investors who are only starting out. Their limited funds are in danger with each investment unless they know exactly what to invest in. This is no time to be taking unnecessary risks.
So, with that said — how to know what stocks to buy for beginners?
The answer is that traders have to do thorough research themselves and only invest in valuable stocks, in order to protect their wealth and potentially grow it.
This doesn’t only mean expensive stocks but stocks of companies that are likely to perform well under the current circumstances. This can be a bit difficult to figure out because the world has not been in a situation like this one in a long time, and we have limited data on what might perform well in this situation.
However, that’s where research comes in. With it, Indian beginner traders will be able to make accurate predictions on what assets might perform well. They can also compare their predictions with experts’ predictions and see which parts of them match.
As always, the trading industry still remains risky, and there are never any guarantees. But, trading and investing are not gambling because you do have a way to make accurate predictions if you know what to do and how to do it.