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Stock Market Tips For the Newbie Investor

Those who are just starting out investing in stocks will probably feel a little nervous. Truthfully, this is expected. The key is to be thorough in educating yourself on how to properly invest your money. The following are some stock market tips to help the newbie investor:

One of the best stock market tips to take note of is to trade with the trend. If you wait to trade what you want to see on the market, you are going to miss out on a lot of potentially great investments. Instead, trade what is available and current and you will do better.

As a newbie investor, you may be feeling very emotional about the stocks and you can not let this happen. Successful trading is only going to happen when you use your knowledge of the business to make the right decisions. Using your emotions to trade stocks is not going to get you very far.

Never go into any trade without the proper information. Jumping the gun too quickly can mean a lot of losses to your finances. This is actually one of the most common mistakes among new investors.

Keep track of what trades you have made and all information that will help you to look back and understand why you made the trade in first place. This information is valuable in learning from past mistakes.

The above are just a couple of stock market tips that a newbie investor will find beneficial. With trading, it is crucial to continue your education. Most people don’t have time or the money to go out and get a college degree in economics and the best thing is they don’t have to. All you need to do to get started is reading the information about it online and find yourself a good broker.

How to Invest in the Stock Market – Three Great Tips

I remember the first time I invested in the stock market, I was fairly young around 19 years old. I ended up buying warrants when I thought I was buying stock! To say that I didn’t have a clue what I was doing would be a massive understatement!

Luckily since then I have learned a few things, some by trial and error, some by studying this stuff in college, and some just by tenacious hard work. Today I want to share with you three or four quick tips to help you down the path to better stock market investing.

The first tip is to make sure you have the stomach for the stock market. It’s a fact of life that the stock market swings up and drops down and then swings back up again and then drops back down again. This see-saw type action is perfectly normal and happens every single day. If you’re the sort of person that has to watch your stock portfolio constantly, then you’ll see it move up and drop back down all the time.

If watching your portfolio drop in value is something that is going to keep you up at night with worry, then you may be better off simply buying safe and secure investments like government bonds or certificates of deposit from an FDIC insured bank.

Having the right temperament is very important when it comes to investing because sometimes the best time to buy is when the stock market is down and if you’re too busy worrying then you may miss out on some of the very best deals that are to be had.

My next tip is that owning stock is much like raising children. By that I mean that you should never have more than you can handle! It’s popular to suggest that people should diversify into many different stocks and many different companies and mathematically that may be correct to some degree. But the fact of the matter remains that the more companies you invest in, the more time you will need to spend researching and running financial analysis for each stock.

When people own more stocks than they can handle, they tend to not put in the necessary time needed to properly analyze the stock. Let’s face it, research is the first thing to go and if you aren’t properly researching your investments then you can quite easily make poor decisions that result in losing substantial amounts of money rather quickly.

My final tip is to never try to predict the future. I have friends that pour over data nonstop in an attempt to predict what the Federal Reserve is going to do regarding interest rates. Are they going to raise interest rates? Are they going to lower interest rates? Guessing correctly before hand can make you a lot of money… of course, guessing wrongly can easily lose you a ton of money too; and if experience shows us anything it’s that most people guessed wrong!

So there you have three simple tips to help you become a stronger and more successful stock market investor. Use them wisely!