Even though the stock market can be an area of uncertainty There are tried-and-tested strategies that will increase your chances of achieving long-term success.
The first thing any investor must do is define their financial goals, like saving for retirement, purchasing a house or financing your children’s education. This will help them decide what amount of money to invest in the market and what type of investments are appropriate for their needs.
It’s also a good idea to prioritize building an emergency fund and paying off debts with high interest prior to investing heavily in the market. Start small and increase your investment over time as you learn.
One of the biggest mistakes novices make is trying to time the market, Keady says. “Nobody knows the exact time to invest,” she adds, noting that the best way to invest is to commit to a long-term investment and stick to it through rough patches.
When you’re beginning your journey, you should concentrate on stocks of companies you already know. Peter Lynch, the legendary Fidelity Magellan Fund manager, once said that you stand a higher chances of success by investing in companies with a demonstrated performance and growth prospects.
It’s also a good idea to stay clear of websites and advertisements that promote certain-thing stocks. They’re usually part of the pump and dump scam, where shady individuals buy buckets of shares of a shady company to drive prices up, then sell their shares for their own gain.
Betty Wainstock
Sócia-diretora da Ideia Consumer Insights. Pós-doutorado em Comunicação e Cultura pela UFRJ, PHD em Psicologia pela PUC. Temas: Tecnologias, Comunicação e Subjetividade. Graduada em Psicologia pela UFRJ. Especializada em Planejamento de Estudos de Mercado e Geração de Insights de Comunicação.