Even though the stock market can be an uncertain place There are tried-and-tested strategies that can increase your chances of long-term success.
The first thing that any investor needs to establish their financial goals, like saving for retirement, buying a house or financing your children’s education. This will help them determine how much money they should invest and which type of investments will be best suited to their specific situation.
It’s also recommended to put a priority on building an emergency fund and paying off debts with high interest prior to investing heavily in the market. If you do have funds to put into the market, start small and gradually increase your investments as you gain more experience.
One of the biggest mistakes novices make is trying to predict the market, Keady says. Keady says that nobody knows when the right time to invest.
When you’re beginning your journey it is best to focus on stocks from companies you are familiar with. As the famous Fidelity Magellan fund manager Peter Lynch famously stated that you have a greater chance of winning by betting on companies with a proven track record and solid growth prospects, rather than trying to predict the future.
It’s also a good idea to stay away from online forums and ads touting sure-thing stocks. In a lot of cases, they are part of a pump-and-dump scam where shady investors purchase shares in a tiny firm to boost prices, then dump their shares to fill their pockets.
View all posts by: Tammy Woodruff