When it comes to the stock market nothing is truly simple because the performance of a stock can make you rich one day, and then break the next. There are some simple strategies to help you wade through the mass amounts of information required to monitor your investments effectively. Luckily, the new age of technology is making this so easy that a child could make money investing.
Investopedia suggests that you sit back and watch the market before attempting to invest. This is great advice because if you see how much a single stock can fluctuate, you will understand how fast a portfolio with a profit can be a portfolio to bankruptcy. Do not become discouraged, though. Follow the strategies outlined below and you will be farther ahead in the market than most people that throw money mindlessly into it.
The most crucial step of the process is to become educated before you start placing real money into an investment portfolio. Read some articles online. Download an eBook. If you prefer, buy a manual at the local bookstore. No matter which route you choose, take the time to learn the market, and all its ups and downs. Do not always assume that hiring a professional money manager will get you the results that you want. Not every application online has your best interests at heart.
One of the key takeaways from educating yourself should be one simple concept: you can earn enough to make a good nest egg for yourself without throwing substantial amounts of money into a company that you heard is doing great. By the time that you hear about how great the company is doing, it will more than likely be leveling off, or even crashing through the floor.
Everyone has a mobile device of some kind today. If not, invest in a decent smartphone before you start investing in stocks of any kind. Download an app, such as Gainy. It is considered one of the best stock app for beginners because it will teach you what you need to know, and it will ease you into investing. It is common knowledge that the more you do something, the better you get. This is also the case with investing. The more times that you complete transactions, the better off that you will be.
A huge benefit of using your mobile device for the application is that you can monitor your portfolio at any time of day, or night. You can get alerts when a change happens with your money, allowing you the confidence of knowing what needs to be done because you have complete control over it.
The biggest piece of advice that anyone can give you is to allocate your funds. Place smaller amounts of money into various areas. This is a trick that all successful investors use. The reasoning is quite simple. If you have invested in one thing that loses money, you will have other areas of your portfolio that will cover any potential losses because they will be up.
It is never a promising idea to place everything in one thing. That is like throwing a hundred-dollar bill off a bridge and expecting it to be on the ground when you drive around to it. Yes, it may still be there, but chances are that if someone passes by and sees it that they will pick it up and slide it into their pocket. The same goes for investments. Your one big shot may make you a substantial amount of money, but it is just as likely to make you broke.
The bottom line is that you do not want to rush into investing blindly. You want to manage your own money. Do not put your trust in others. Educate yourself. Use a reputable application. Never invest in one thing unless it is yourself.
Disclaimer: This article is not financial advice. Neither is it advice on how to invest in stocks. Individuals are responsible to do his or her own due diligence when investing in stocks.
Featured image: Unsplash (Hakan Nural).