Although the market is full of uncertainty, certain tried-and-true principles can boost your chances to long-term success.
The first thing that any investor must determine their financial goals, like saving for retirement, buying a home, or funding your children’s education. This will help them decide on how much money they should invest and what kind of investments will be best suited to their needs.
It’s also recommended to prioritize having an emergency fund in place and paying off debts with high interest before investing heavily in the market. If you do have funds to put into the market, start with a small amount and gradually increase your investments as you gain experience.
One of the biggest mistakes newbies make is trying to time the market, Keady says. “Nobody is able to pinpoint the ideal moment to make a move,” she adds, noting that the best approach is to commit to an investment that will last for a long time and stay with it even through the rough patches.
If you’re just beginning your journey it’s a good idea to focus on stocks in companies you are familiar with. As the famous Fidelity Magellan fund manager Peter Lynch famously said that you stand a better chance of winning by betting on companies that have a solid history and strong growth prospects than by trying to predict the future.
Avoid online forums and adverts that promote stocks with a high probability of success. They’re often part of a pump and dump plan, where shady individuals buy buckets of shares in a barely www.marketanytime.com/ traded company to push prices up, and then dump their shares for their own benefit.