Stock Market Tips For Beginners
Even though the stock market can be a place of uncertainty, there are some tried-and-true strategies that will increase your chances of achieving long-term success.
Investors should first identify their financial goals. For instance, saving for retirement, purchasing a house, or paying for the education of your children. This will help them decide on how much money to invest and what kind of investments are best for their situation.
The importance of establishing an emergency fund or paying off loans with high interest prior to putting your money into the market is also smart. Start small and increase your investments over time as you become more experienced.
Keady says that one of the biggest mistakes made by novices is to try to time the market. Keady says no one knows when the perfect time is to invest.
If you’re just beginning it’s best to concentrate on stocks from companies that you understand. Peter Lynch, the legendary Fidelity Magellan Fund manager, once stated that you have better odds of success investing in companies with a demonstrated track record and a strong growth prospect.
Avoid online forums and ads that promote stocks that have a high chance of success. In many cases, they are part of a pump-and-dump scheme in which shady people purchase buckets of shares in a thinly traded company to drive up the price, only to then sell their shares to line their pockets.
