Contrary to popular belief, it’s not that difficult to find and buy stocks. The difficult part comes when it’s time to choose well-performing companies that have been winning on a consistent basis.
This requires a special set of skills, the absence of which leaves you searching for stock tips, just as you are right now.
The good news is we’ve got just the tips and knowledge you need to apply the best stock investment strategies on the market.
Not only that, but we’ll offer you a bonus investment tip that’ll help you 10x your gain. This is to invest 10% or less of your own portfolio in what’s called individual stocks. The rest of your portfolio should consist of a constellation of low-index mutual funds.
If you’re going to use it within the next five years, then you shouldn’t invest it in the stock market, because this is a long game.
- Don’t Invest with Emotions
You don’t need Einstein-level IQ to successfully invest in stocks. All you need is an agreeable and balanced temperament that allows you to stay patient and play the long game. Overdoing it out of emotional attachment can lead to some serious mistakes that you’ll want to avoid.
The following stock market tips are aimed at helping you to develop the temperament of a successful investor.
- Go After Companies, Not Just Trading Symbols
If you look at the latest CNBC post, you should see any number of stock quotes traveling across the screen. To the untrained investor, picking from these can seem daunting, as you probably don’t know the first thing about stock picking.
The most important thing to keep in mind is that buying stocks is all about buying into a company and after that, you become part-owner.
You’ll see a lot of conflicting “facts” out there as you search for the perfect business to partner with as an investor. It’s at times like these that we advise you put on your “business buyer” hat. That’ll help you ask the right questions, such as the company operations, its competitors, its position in the industry and its long-term projections.
Also, be sure to check-in with reliable sources such as InvestoTrend, for real updates that make sense.
It’s not uncommon for an investor to seek new challenges with the stocks they’re buying. But, even the most seemingly exciting investments can come with a lot of unwanted downside, the biggest of which is selling low even though you bought high.
Again, it’s hard for an unseasoned investor to know these things except for experience. But you can avoid such mistakes by journaling.
This entails writing down all the different qualities that make the stocks in your portfolio worth it. This makes it easier to choose the best stocks for your portfolio with a clear head.
- Slow and Steady Wins the Race
As mentioned earlier in this article, investing in stocks is a long game. The longer you hold on to a stock, the greater the reward, whether it’s in getting higher dividends or share price appreciation.
Be like Warren Buffet and take your time when buying stocks, so you can hold on to them for decades without any trepidation.
Stocks are pretty low-maintenance and all you need to do is check on them on a quarterly basis. This shouldn’t be so hard and it’ll help you to stay focused and avoid knee-jerk reactions to short-term happenings in the stock market.
The goal is to keep an eye on company value instead of share price, because the latter will always fluctuate and isn’t always a true reflection of the company. Again, stay calm and patient no matter what the stock market is doing.
As any seasoned investor will tell you, short term events are never a true indication or reflection of a company’s long-term performance. Among other things, reaction to short-term noise is what sets successful investors apart from unsuccessful ones.
But, when it comes to your own investment portfolio, be sure to keep a cool head and use your investing journal to your advantage.