The stock market can be difficult to navigate. Stories are told of friends who lose money, people who make millions, and everywhere in between. With that much variability, it can be daunting for those entering the market, and scary for those in the market wanting to continue to make the right choices.
An article on Motley Fool listed several things the author wished he’d have known sooner when it comes to investing. Below are some of his market hacks for you to know and understand, no matter where you’re at in investing. Whether you’ve been investing for the last 50 years or 50 days, take these seven tips to improve your investing strategy.
1. More Isn’t Always Better
Having a diverse portfolio is important to protect your overall investment. However, when buying new stock, consider putting more money into your solid stocks that have continued to prove trustworthy.
Adding $100 into Amazon over investing in a new stock you’re unsure of is likely to have a higher return. The market can be risky enough. Doing this removes some risk and is putting your extra money in a safer stock that has continued to grow.
2. Buy What You Know
One of the biggest factors that keeps people out of the stock market is realizing how much research can go into it. If you listen to investing gurus, they spend hours researching investments, stocks, when a buyout is going to happen, when companies will merge, when new products will launch, and how that affects the market, etc.
It’s important to do research. There’s also a benefit to buying the brands you’re familiar with. Are you a Disney fan? Do you stream off Netflix? Take time and consider the brand names that are top of mind. Researching will be easier and won’t seem as big of a feat.
3. Resist the Temptation to Sell Early
Sometimes you think constantly being busy means you’re being productive. This can be a decent rule of thumb elsewhere. Not with stocks. With stocks, it shows on average, more activity leads to less gains. SIT STILL!
Others will recommend letting your winners run, but the best algorithmic trading software at iFlip makes it easy. Doing more than just riding the ups and downs of the market, iFlip’s A.I. SmartFolios use machine learning analysis to buy, sell and hold based on market risk.
4. Be in it for the Long-Term
Going off the tip above, changing often leads to less money made. Being in the stock market for the long-term means more than just a year or two; it means decades.
Money starts to grow and compound. Some years it can crash (like 2008/2009 or 2020). However, after all the crashes, within a few years, stockholders make back their investment plus more.
iFlip values the safety, preservation and growth of your investment. Their automated trading software, along with having the best mobile stock app has helped save an average 24% across the last eight crashes, compared to the Market.
Investopedia shares their biggest reason for committing to long-term investing because “over a 20-year time period, the S&P 500 has always posted a positive return, no matter when you would have invested” (Investopedia).
6. Keep your Backup Savings Out of the Stock Market
Many have thrown extra savings into the market hoping it can turn into quick cash or their money will in the next year. However, you can’t bank on that.
Over time, the stock market proves well. But in pinching times, you don’t want to have to pull out of the stock market while it’s low in order to pay the bills.
7. Talk Stocks with a Friend
Friends and acquaintances try to avoid the subject, but it can be beneficial to talk about money. Whether it’s a spouse, colleague or friend in the know, having someone who also understands the market and can help you vet ideas is always a good idea.
It’s important to learn all you can about what you’re investing in and how A.I. works. iFlip’s A.I. offers mobile stock trading and stock trading software to help make your investing and personal retirement planning easier.
See Related A.I. Knowledge is Power
8. You’re Not Married to the Stock
Are you always going to agree with the way Jeff Bezos runs Amazon? Are you going to like everything that they do? Probably not. But it’s a stock, not your spouse.
If you don’t like fundamental things about it, fine. If it’s a winner, let it still make money for you despite your differences.
The A.I. SmartFolios at iFlip make it easy to use the above hacks. With several SmartFolios available, you’ll find one containing the stock that will perform best for you.
Then, see how life is easier when A.I. invests for you. Jump over to iFlip and get started.