Stock Market Investment Tips
Ten tips to help you get started on the right foot investing in the stock market…
Educate yourself about the market ~
Do your homework and learn all you can before you start deciding where to invest your hard-earned money. Look at the history of the stocks you’re considering and learn to read a prospectus.
Set investment goals for yourself ~
Decide exactly much much you’re will to spend, and what prices (high or low) you will sell at. When you reach your goal, reassess. Don’t be afraid to change what isn’t working, but don’t be to quick to judge either. Decide how many week/months/years you’re willing to hold each investment, and then give the market a chance to sort itself out over that whole time period.
Don’t gamble with the grocery money ~
Or the rent money, or anything else you really can’t afford to lose. Always remember that the stock market is a gamble. Don’t risk money that you need for immediate necessary expenses.
Invest for the long term ~
Stock prices will fluctuate, always! Don’t panic if the short-term prices drop on a stable company. Always plan your stock investments to be held for at least five years. Over that time, the market fluctuations will have a chance to trend upwards overall. (Staring at the daily, or hourly, changes will drive you crazy!)
Diversify ~
Don’t put all your eggs in one basket. You don’t want to be in a position where one bad choice, or one bad turn of the market, wipes out all your hard work. Spread the risk around by buying in to several different kinds of securities. Some stocks, some bonds, some CDs, a variety of short and long term investments, and little bit of cash on hand for emergencies.
Consider an online broker service ~
But NOT the first months! If you’re new to investing, it’s worth the money to have a full-service broker leading you. Later, when you’ve learned more about how the market works, consider switching to a self-serve, or online service to help reduce your fees.