Although 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 any investor needs to do is define their financial goals, for example, saving for retirement, purchasing a home or funding your children’s education. This will allow them to decide how much money to put in and what type of investments best suit their situation.
It’s also recommended to prioritize creating an emergency fund and paying off high-interest debt prior to investing heavily in the market. If you have the funds to put into the market, you should start with small and gradually increase your investments as you gain more experience.
Keady states that one of the biggest mistakes beginners make is to attempt to time the market. „Nobody is able to pinpoint the ideal moment to make a move,“ she adds, noting that the best approach is to commit to an investment that will last for a long time and stay to it through rough patches.
If you’re just beginning your journey it’s best to focus on stocks in companies you are familiar with. As the legendary Fidelity Magellan fund manager Peter Lynch famously observed that you have a higher chance of winning when you bet on companies that have a strong history and strong growth prospects rather than trying to predict the future.
Avoid online forums and adverts that promote stocks with a high chance of success. They are usually part of a pump and dump plan which involves the purchase of buckets of shares in a barely traded company to drive the price up, then take their shares away for their Click This Link own gain.
