Investing in stocks can seem daunting. It seems like the right thing to do, but many often don’t know where to start or which advice to keep and which to ignore. Follow these tips for investing in stocks and you’ll be just fine.
Top 5 tips for investing in stocks:
1. Just get started. Not knowing where to start should never be your excuse, because that’s what we’re here for! As soon as you get started investing, you’ll pick up momentum, and you’ll be able to keep the ball rolling on your own. Click here for 7 smart ways to get started.
2. Diversify. Diversifying is key. That means having multiple holdings in your securities and multiple ways to make money off of investing. Don’t just diversify across different types of companies, but also different types of industries. When it comes to investing, the more uncorrelated, the better.
3. Do your research. Successful investment strategies are not based on hunches, guesses, or knee-jerk reactions. In fact, we utilize some of the top research data services to guide the investment decisions that are implemented into our client portfolios.
4. Own companies you like. Never invest in a company that you don’t understand or that you don’t like. Own companies that make you feel comfortable (like Coca-Cola!). Make sure you understand what they do and how they make money. This will help you feel much more comfortable holding their stock, and you’ll be less likely to want or need to sell.
5. Know that timing is important, but it’s not everything. Trying to time the stock market is nearly impossible (if you don’t believe us, read this). It’s true that if you miss just five of the best days of the market, returns can be significantly impacted. However, ultimately, it comes down to your experience, not timing. Use your own knowledge, research, and experience to influence your decisions rather than trying to time it perfectly.
When it comes down to it, it’s up to you to make the stock market game what you want it to be. The more you follow these tips for investing in stocks, the more experience you gain in the stock market, and the more you learn to trust yourself, the more success you’ll see.
If you still have any questions about investing or want someone to walk alongside you in this journey, we’d love to talk. We’ll give you a tailored, transparent, research-driven and easy-to-understand investment strategy. Simply download the app to get started, or read more about our investing solutions here.