I’ve been investing in the CSE for a few years now and here are my advices
1) Most important: Never take suggestions from anyone online regarding your investments
Not only is it extremely risky, it’s also illegal. Only SEC licensed brokers can provide advice
2) Always do your own research on companies. Understand valuation methodologies from YouTube channels or websites like Investopedia
3) Biggest misconception is that brands with very high reputations such as JKH are good investments. When in reality, financial performances versus social reputation can by very different
4) While it’s extremely difficult, try not to follow the market (Herd mentality). Always make informed decisions.
Read news paper articles from DailyFt or EconomyNext, read research reports published by stock brokering houses
Yeah. As you're learning, think about buying from the S&P20 listed stocks (which your picks are part of) , it's mostly stable companies with stable earnings growth, usually dividend payments. For the moment don't let one share be more than 50% of your portfolio. Continue to buy every month.
Once you understand the mechanics of the markets, you can expand to more shares.
More discussion on r/SriLankaCSE
Before buying we need to look into financials and valuations, some companies which have a high reputation in the society are not really doing well when it comes to their financials. The best way to learn is by investing itself so start with a small amount.
For more Colombo Stock Exchange related content check - r/SriLankaCSE
I’ve been investing in the CSE for a few years now and here are my advices 1) Most important: Never take suggestions from anyone online regarding your investments Not only is it extremely risky, it’s also illegal. Only SEC licensed brokers can provide advice
2) Always do your own research on companies. Understand valuation methodologies from YouTube channels or websites like Investopedia
3) Biggest misconception is that brands with very high reputations such as JKH are good investments. When in reality, financial performances versus social reputation can by very different
4) While it’s extremely difficult, try not to follow the market (Herd mentality). Always make informed decisions.
Read news paper articles from DailyFt or EconomyNext, read research reports published by stock brokering houses
How someone can invest on stock, like where I should start ? Like how to get into trading?
I went through a stock broker. There are many like CAL, First Capital, CT Smith, etc.
The stock broker will assist you in opening up a CDS account (think of it as registering with the CSE)
What is the minimum investment and registration fee for onboarding ?
That very much depends on the stock broker. Ranges from Rs.1,000 to 50,000
Amazing advice!
Yeah. As you're learning, think about buying from the S&P20 listed stocks (which your picks are part of) , it's mostly stable companies with stable earnings growth, usually dividend payments. For the moment don't let one share be more than 50% of your portfolio. Continue to buy every month.
Once you understand the mechanics of the markets, you can expand to more shares. More discussion on r/SriLankaCSE
Learn well before investing
Before buying we need to look into financials and valuations, some companies which have a high reputation in the society are not really doing well when it comes to their financials. The best way to learn is by investing itself so start with a small amount.
For more Colombo Stock Exchange related content check - r/SriLankaCSE