While the market is rife with uncertainty, certain tried and true principles can help boost your chances to long-term success.
Investors must first establish their financial goals. For example, saving for retirement, purchasing a home, or funding the education of your children. That will help them determine the amount they should invest in the market and what kinds of investments would be appropriate for their particular situation.
Prioritizing the building of an emergency fund or paying off loans with high interest prior to investing in the market is an excellent option. 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 newbies make is trying to anticipate the market, Keady says. “Nobody knows the exact right moment to jump in,” she adds, noting that the most effective strategy is to commit to an investment for the long run and stick with it through rough patches.
If you’re only beginning, it’s a good idea to focus on stocks in companies that you understand. Peter Lynch, the legendary Fidelity Magellan Fund manager, once stated that you have better odds of success if you invest in companies that have a proven track record and growth potential.
It’s recommended to stay away from online forums and ads touting sure-thing stocks. In a majority of cases, these are part of a scam called a “pump-and-dump” that involves www.marketanytime.com shady individuals buying buckets of shares of a sluggishly traded company to increase the price and then dump their shares to fill their pockets.
