Even though the stock market can be a place of uncertainty there are tried and tested strategies that can increase your chances of long-term success.
Investors should first determine their financial goals. For example saving for retirement, purchasing a house, or funding the education of your children. This will allow them to determine what amount of money to invest in the market, and what kind of investments make sense for their particular situation.
It’s also recommended to prioritize building an emergency fund and paying off debts with high interest prior to investing in the market. Start with a small amount and then increase your investment as you gain experience.
One of the biggest mistakes novices make is to try to time the market, Keady says. Keady believes that no one knows what the ideal time to invest.
If you’re just beginning, you should focus on stocks of companies that you are familiar with. As the legendary Fidelity Magellan fund manager Peter Lynch famously stated that you stand a better chances of winning by betting on companies with a solid history and strong growth prospects than by trying to predict the future.
It’s also a good idea to stay away from online forums and ads touting sure-thing www.marketanytime.com/generated-post/ stocks. In a lot of cases, they are part of a pump-and-dump scam that involves shady individuals buying shares of a sluggishly traded company to boost the price and then dump their shares to fund their own pockets.