TIPS FOR NEW STOCK MARKET INVESTORS:

Investing in the singapore stock market  is one of the fastest ways to grow your wealth when compared to growing wealth in a savings account with small monthly increments. Relying on the advice of friends and family isn’t the best way to get started investing in stocks for beginners because everyone’s financial situation and investing risk limit is different. Relying on investing experts and expert resources can give you some peace of mind when you’re making knowledgeable investment decisions that can potentially grow your money.
The three most important points that are crucial for success in the world of stock investments.

Look stocks as businesses:

Behind every stock is a business. There are more than 700 stocks to invest in the Singapore stock market.we should not handle stocks like pieces of paper to be bought and sold randomly.

Warren Buffett, one of the world’s most renowned investors, once said:
“Buy a stock the way you would buy a house. Understand and like it such that you’d be satisfied to own it in the absence of any market.”

which means that we should know a company inside out very well before investing any money into it. For example, before we buy any electrical devices we would do thorough research on it by checking reviews on the internet, comparing different products and the price, before parting with our cash.  
The same concerns with the businesses. Before we buy any stock, we should research the underlying business thoroughly, such as its financial statements, its competitive advantages, and its management. We also want to ensure that the valuation of the company is not expensive.

Don’t be duped by high dividend yield:

The dividend yield of a company gives you an idea of how much dividends you are getting for the stock price that you are paying. So check the company’s financial position before buying such dividend payers.

For example, if Company X’s dividend per share is S$1 and its stock price is S$10, the dividend yield of Company X is 10% ((S$1/S$10)*100%). However, this dividend yield in itself does not tell us if the dividend is sustainable. Another firm, Company Z, with a dividend yield of 5%, may offer more stable dividends than Company X.
So, never buy any stock based on high dividend yields.

Keep checking your emotions:

This means What is needed from the investor is patience and discipline, without getting fear anyway. When it comes to investing, we should have a long-term view, and invest more in stable businesses whenever the stock market throws an outburst.

From 1993 to 2017, there were a total of 6,411 trading days where some companies have more than doubled (excluding dividends). In that period, there were 870 days when the index lost 1% or more, 242 days with a drop of more than 2%, and 90 days when the daily decline went past 3%. This shows that over the 24-year period, the stock market managed to generate wealth for investors.