The market is full of uncertainty, certain tried-and-true concepts can boost your odds to long-term success.
Investors should first define their financial goals. For example saving for retirement, buying a house, or paying for the education of your children. This will assist them in determining how much to invest in the market and what kind of investments would be appropriate for their needs.
Prioritizing the creation of an emergency fund or paying off loans with high interest before investing heavily on the market is a smart idea. If you do have funds to put into the market, begin with a small amount and gradually increase your investments as you gain experience.
Keady explains that one of the most common mistakes made by novices is trying to predict the market. Keady says that nobody knows when is the best time to invest.
If you’re only beginning it’s a good idea to invest in companies you are familiar with. Peter Lynch, the legendary Fidelity Magellan Fund manager, once stated that you have more chance of success when you invest in companies with a demonstrated track record and growth potential.
It’s also a good idea to stay away from websites and advertisements that promote certain-thing stocks. In many cases, they are part of a scheme known as a pump and dump where shady investors purchase shares of a sluggishly traded firm to boost the price, only to then sell their shares to line their pockets.