The stock market is riddled with uncertainty, certain tried-and-true concepts can boost your odds for long-term success.
Investors should first determine their financial goals. For instance, saving for retirement, buying an apartment, or financing the education of your children. This will help them determine how much money to put in and which types of investments learn the facts here now will be best suited to their specific situation.
It’s also a good idea to prioritize having an emergency fund in place and paying off debts with high interest before investing heavily in the market. Start small and increase the amount you invest over time as you gain experience.
One of the biggest mistakes beginners make is to try to time the market, Keady says. Keady believes that no one knows when is the best time to invest.
If you’re just starting out it’s a good idea to invest in companies that you understand. As the famous Fidelity Magellan fund manager Peter Lynch famously pointed out, you have a better chance of winning if you bet on companies with a solid history and strong growth prospects rather than trying to predict the future.
It’s also a good idea to stay away from online forums and advertisements promoting certain-thing stocks. They’re often part of the pump and dump scam, where shady individuals buy buckets of shares of a poorly traded company to push prices up, then sell their shares to gain their own gain.
