So you have finally decided to invest a little bit of money into a stock market investment, but you don’t quite know where to start. This is the post for you because here are ten tips that any new investor should follow along with. While some of these are basic knowledge and some are nothing more than good moral advice they are all worth reading and implementing into your new investment life.
If you don’t have the time to research stocks every day but yet want to earn short- or medium-term returns on your trades? Swing trading seems to be the greatest strategy for you. Compared to day trading, that takes less time. That is also a lot easier. so what is swing trading? In the meanwhile, you can always read this post for some more stock investment tips…
Understand it is Always a Gamble
There is no such thing as sure-fire stocks, nor as their ever-green stocks. Sure, some of the larger businesses and brands do have a fairly stable holding price, but there is ALWAYS that risk that the price of each share could drop or raise at the drop of a hat. Yes, people do indeed make their fortunes from the smallest of investments, but many more will lose that amount as well.
Understand Your Portfolio
It’s no good investing in brands and businesses you don’t understand or have never heard of before. If you pick stocks from companies you follow along with it will make it easier for you to predict what the stock price might do. Even if you have picked stocks in a company you don’t know, why not do a little homework on their past, future and present plans and share prices?
A Looser is a Good Starter
While again, it is worth pointing out that there is no guarantee stock will rebound after a protracted decline a lot of people do still invest in stocks and shares that are currently in that decline. That way they get them for a cheaper price and can sell them again once the price stabilises. For people new to this sort of investment a losing stock (for no good reason) is often one that will bounce back just as quickly so they are worth jumping onto.
Always Think Long-Term
If you go into a stock investment with short terms goals you are going to feel very disappointed. Sure, you can make quick gains (and losses) from stocks, but those who make the most money from them always think long-term. But ask yourself where this brand, firm, or company are heading you can get a good gauge on their long-term plans which also means long-term share growth. Just because a share price has risen 5% in the last hour doesn’t mean it won’t raise 1000% in the next year!
Try Different Trading Platforms
With such a diverse choice of trading platforms out there, you would be foolish to pick the first one you come across and stick with it. Take a look around online and get a gist of what each one offers, or doesn’t offer and knock up a small list of its pros and cons.
Don’t Let it Consume You
When you first start trading you will soon find yourself checking the stock prices every single day and it is easy to get to the point that it consumes you, or even affects your mental health. Thinking long term and understanding the bigger benefits of long-term investment will stop this form of overactivity. Checking in on your stocks once per month is fine, but anything more than that is pointless.
Understanding That Bad News is Sometimes Good News
When you own stocks or shares in company “A” and you see it on the news that is painting it in a negative light is not a sign for you to jump ship. In fact, bad news can often be good for a company. Do you remember the Coke-Cola share dip after Cristiano Ronaldo’s Coke snub at Euro 2020? Well, first up that was not the whole story, but long term the company is still up +5.36 (10.57%) in the past 6 months! And yes, this was down to the bad publicity bringing more brand attention to them.
Good Stock Trading is Boring
Yes, you read that right. It can be exciting to make a few pounds on various stocks, but when it comes to earning big money from it you have to take the boring route. Dividend growth investing for one example is only for those with a VERY conservative strategy, but if you are after the quick buy, quicker sell don’t expect to make those bigger bucks.
Follow The Leader
Don’t be afraid to follow “expert advice” from someone you trust and know has been successful in the past. Sure, investing is always a gamble, but following expert advice is not only a good idea, it’s the way a lot of amateur traders learn the ropes.
Never Invest Everything
If you only follow one of these tips make sure it is this one. Never, ever invest any money that isn’t part of your surplus funds. If you can’t afford to lose it, don’t invest it! Yes, some people have made their fortunes investing their entire portfolio in various stocks, but you should understand that it was nothing more than a winning gamble and no stock gain or lose is hundred percent sure.
If you need more advice do visit some of the links I have included for your reference. And if you have any other tips do let us know in the comments below.