The market is rife with uncertainties, certain tried-and true principles can help boost your chances for long-term success.
Investors should first define their financial goals. For instance saving for retirement, buying an apartment, or financing the education of your children. This will allow them to decide how much money to put in and what kind of investments best suit their needs.
Making a priority of building an emergency fund or repaying high-interest loans prior to putting your money into the market is an excellent idea. If you do have money to put into the market, start small and gradually increase your investment as you gain more experience.
Keady explains that one of the most common mistakes made by beginners is trying to predict the market. “Nobody knows the exact right moment to get in,” she adds, noting that the best way to invest is to make an investment for the long run and stick with it even through rough patches.
If you’re only beginning you should try to concentrate on stocks of firms that you are familiar with. Peter Lynch, the legendary Fidelity Magellan Fund manager, once stated that you have more chance of success if you invest in companies with a demonstrated track record and a strong growth prospect.
Avoid www.marketanytime.com/ online forums and adverts that promote stocks with a high chance of success. In a majority of cases, these are part of a pump-and-dump scheme where shady investors purchase shares in a thinly traded company to drive up the price, and then sell their shares to line their pockets.