Although the stock market is filled with uncertainties, certain tried-and true principles can boost your chances to long-term success.
The first thing that any investor must do is define their financial goals, for example, saving for retirement, purchasing an apartment or financing your children’s education. That will help them determine the amount they should invest in the market and what kinds of investments make sense for their particular situation.
Making a priority of building an emergency fund or repaying high-interest loans before investing heavily on the market is also smart. Start small and increase the amount you invest as you gain experience.
Keady states that one of the most common mistakes made by novices is trying to predict the market. Keady claims that no one can tell when the right time to invest.
If you’re just beginning it’s best to focus on stocks in companies you are familiar with. Peter Lynch, the legendary Fidelity Magellan Fund manager, once said that you stand a a greater chance of success if you invest in companies that have a solid track record and growth potential.
Avoid online forums and ads that promote stocks with a high www.marketanytime.com/generated-post-2/ chance of success. In a lot of cases, they are part of a scheme known as a pump and dump in which shady people purchase shares of a sluggishly traded company to boost the price and then dump their shares to line their pockets.