Investing in share market at the Colombo Stock Exchange is a thing many people will love to get involved in because of its profitability.  The current economic problems have created fear in the minds of so many people who are now treading with caution so they will not incur too much risk.  The new media is not helping the case either as different kinds of negative news about the anguish of investors is being aired on a daily basis.  In this article, strategies that will guarantee lots of money from shares in the stock market will be discussed.

The first simple obvious strategy is to buy right and sell right.  This is where so many investors miss it.  There is no way you can make money in the share market if you buy and sell at the wrong time.  You can make money by buying shares when the market price is low compared to its value in the market.  Then, you wait till it rises to a level where you can sell to make a nice profit. It is near impossible to make money by buying share when it is very costly.

The second strategy is to find out the level of exposure that is comfortable with you. There is an important thing to keep at the back of your mind as an investor. It is the younger you are, the more you should invest more aggressively because you have the capacity to accommodate risks.  On the other hand, the older you are, the less aggressive your investment. If this rule is not followed and you go ahead to invest in shares with high risks and something happens negatively to your investment, it can lead to serious health challenges if care is not taken.

The fourth strategy is not to buy large portfolio of shares in the stock market.  As an investor, you have to have knowledge of the amount of portfolio you want to keep in your shares.  As a rule of thumb, it should be around 10-20 and not more than that. The reason for this is that, when there are many portfolios of shares, you will not be able to concentrate or focus your efforts and time to plan. People who have made money in Colombo Stock Exchange focus their efforts on shares they can manage appropriately.  Fewer numbers of portfolio of shares will enable you to monitor and access the companies you invest in.

The fifth strategy to consider when buying shares in Colombo Stock Exchange is to control your emotions.  This is the most important war you will have to fight in order to be successful in the share market. You have to control your emotions.  The problem with most investors who failed is that they are greedy and fearful.  These two emotions are very dangerous and when they consume an investor, it is bound to be lots of mistakes and losses.  Don’t be greedy, take a step at a time and watch before you invest.