Stock markets have always beckoned investors who want to double their money. However, investing in the stock market is easier said than done, as it requires immense discipline, patience and a clear picture of the existing market condition to make money here. The big question how to invest in stocks wisely remains a mystery to many even today. Even though there is no straight and simple formula to succeed in stocks, given below are some golden rules on how to invest in stock that will ensure that you don’t make blunders along the way and make wise moves in this area.

• Research well before deciding: It is imperative that you take the time to conduct proper and meticulous research before you invest in any stock. However, most investors rarely follow this rule and invest in well-known companies and industries without too much probing. This can at times backfire and put you in a big soup.
• Never move with the crowd: Most of the investor’s decisions are typically influenced dramatically by what their friends, acquaintances and other investors do. So naturally, one is drawn to invest someplace where everyone seems to be investing. The ideal move is to be wary when everyone seems to be greedy and be daring where others are hesitant to tread. This strategy can go a long way in helping you make huge profits.
• Invest in some business that you are familiar with: It is always advisable to invest in businesses that do well when venturing into stocks. And that too in some kind of business that you have quite an understanding about what exactly is happening.
• Never let your emotions rule you: Greed and fear and two emotions that rage wildly in stock marketing. And this makes it imperative that you do not allow these two emotions cloud your reasonable judgment about what to do and when to act. Foolish judgments made in the heat of a moment can burn your fingers very severely as far as the stock market is concerned. So, beware.
• Be open to a broad portfolio: It is necessary that you set for yourself a full portfolio between instruments and asset classes as this is one of the leading secrets to reap maximum returns on various investments with least risk. So, go ahead and be open to diversification.
• Don’t be greedy: It is, of course, natural to have hopes and aspirations to reap commendable benefits out of your stock investments. However, it is quite foolish to hope for unrealistic profits and jump headlong into unwanted investments that you may regret later.
• Never invest more than surplus funds: Everyone knows stock markets are extremely risky and if you do want to try your hand here, make sure that you plan to invest only in the funds that you have in surplus and that won’t harm you very much financially if you happen to be unlucky here. There is every chance that you can mint money if you are lucky and play wisely. However, there is always a certain amount of risk involved, and therefore it makes sense to step into this field only if you are bursting with surplus cash.
• Keep monitoring closely: You need to be aware of the fact that we are living in a kind of global village where any event happening in any nook of the world has a direct or indirect impact on the financial markets. This makes it imperative that you constantly and carefully monitor the portfolio and make the required alterations whenever and wherever necessary. Suppose you find that you are unable to keep a close watch, the best move would be to hire a professional financial advisor who will look after your investments and stocks and act immediately to your benefit.
• Ensure you are disciplined in your approach: History reveals that huge giants have been run down in some panic situations. The market is so highly volatile that there lurks a huge risk factor that can make you lose tremendously however established you may be in the stock market. So, when understanding how to invest in stocks make sure you follow a disciplined approach and invest systematically in shares that seem ripe to invest in and wait patiently to sell till the right time comes. So, it requires immense prudence and disciplined approach to reap benefits here.
• Never commit the mistake of attempting to time your market: This is one fact that you need to bear in mind and where a lot of investors blunder. Do not ever attempt timing the market if you want to avoid unnecessary risks and huge losses as far as investing in stock is concerned.

The above mentioned golden rules are sure to help you get an idea about how to invest in stocks and ensure you do not blunder while treading through this risky path.