While the market is full of uncertainty, certain tried-and-true concepts can help boost your chances for long-term success.
Investors must first establish their financial goals. For instance, saving for retirement, buying a house, or funding the education of your children. This will help them decide how much to invest in the market and what type of investments will be suitable for their situation.
It’s also recommended to put a priority on the creation of an emergency fund and paying off debts with high interest before investing heavily in the market. Start small and increase your investment over time as you learn.
One of the biggest mistakes newbies make is to try to time the market, Keady says. «Nobody knows the exact moment to get in,» she adds, noting that the best approach is to make a long-term investment and stick with it through the tough times.
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 virtual data rooms to store and share sensitive documents said that you have more chance of success if you invest in companies with a demonstrated track record and growth prospects.
It’s also a good idea to stay away from online forums and advertisements promoting sure-thing stocks. In many cases, these are part of a pump-and-dump scam in which shady people purchase buckets of shares of a barely traded company to drive up the price and then dump their shares to line their pockets.
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