It is difficult to earn money and easy to lose money. These days stock market investment is trending, every second person around you will indulge you to invest in stock money with little money. But no one tells you how to start investing with little money.

STEP 1) HAVE A PLAN

The plan provides the direction to your goal, as you are starting with little money you need to have a plan; a proper investment plan will help in the management of your money. As you are new to the market and have little money it is advisable to invest for the long term, as it is less risky and provides opportunities to improve mistakes in case anything goes wrong. As we all know, stock investment can provide stable long-term returns. Set a goal, have a long-term vision and make small investments on a regular basis.

STEP 2) INVEST IN SMALL COMPANIES

As you are a beginner and have little money, one should invest in small companies as small companies have room to grow, along with its stocks company also grows.
As you are starting out with a small sum of money, opportunity cost needs to be taken into account. It is known that small companies are riskier than big companies. A proper analysis of companies needs to be done before making investment.
In order to know the worth of a company, its balance sheet, cash flows, and different ratios like EPS, PE ratio needs to be considered. With ticker, you get everything readymade just login to your account and grab the opportunity.
One should understand and study the potential and growth of the company before proceeding to the investment.

STEP 3) MANAGE YOUR EMOTIONS

Our human nature is very emotional, and it is easy to get caught up in any emotional activity, but when it comes to the stock market, we must put our emotions aside and work hard. The stock market is volatile and price movements are not stable and can go up in the morning and down in the afternoon. If you think emotionally, the downward movement may force you to make the wrong decision. Good returns make people happy, but losses make them desperate and many people stop investing. It is not advisable to stop investing after a loss, so it is important to put your emotions aside when investing.

STEP 4) PERIODIC INVESTMENT

It is advisable to invest small amounts but invest regularly i.e. Whether you are investing weekly, monthly, quarterly, or one-time investments. The goal is to invest regularly. Sometimes your money may not be good and you may lose money in an emergency. You can double your investment next month or next week depending on the length of your investment. Making up for lost investment will keep your financial goals on track.

STEP 5) RISK MANAGEMENT

You have heard "Investments are subject to market risk", There are many types of risks involved in market investment. You need to understand your risk tolerance, that is, how much risk you can bear under difficult circumstances. If you are a risk-taker, invest in penny stocks, and blue-chip stocks are the best choice if you are risk-averse.

STEP 6) DIVERSIFIED PORTFOLIO

The best option to avoid losses is a diversified portfolio, one must not invest all of its money in one stock, the money invested must be diversified, so that loss from one stock could be recovered from another. Determine the allocation ratio of shares and specific industries, and make corresponding investments. By diversifying, don't worry about the underperformance of specific stocks. However, the portfolio must not expand due to diversification. Hold a limited number of stocks in your portfolio as it can be difficult to monitor many stocks.

The above steps talk about how to invest with little money. You might have thought of how to earn little money, in my opinion, to earn little one must start working under someone and the salary of months could turn out to be the little money.

Another option to earn is blessings; it may sound funny but in India, if you seek an elder's blessing you get something in return which is generally money. That money we used to save in our piggy banks. This money could act as a little start to your investment.

There are several other ways to earn little money, many trading platforms provide you with free trades where you can use their money and at the end of the month you need to pay the interest or brokerage according to the terms of the company.

With the help of this article, you can start your investment journey with little money, you are also guided with the ways to earn money. Now it is a personal view to start because there are excuses to not start and courage to start.

You must find out the reason which one to choose because warren buffet is him because he started from little, Rakesh Jhunjhunwala successes because he took the initiative.
There will be times when you will be pulled back, it is you have to keep yourself steady and achieve your goal and be a successful investor.

Author's Bio: 

S. Vishwa is a web marketing analyst at Finology Ventures. With 6+ years of web marketing experience, joined a Fintech company to help people to learn and earn more.