stocktipsvalue的部落格

5 Keys to Stock Market Success We believe that anyone can make sound investments in the stock market, and you don’t need to have an extensive financial education, huge income or assets, or a very high IQ in order to get started. If history is any indicator, an annual return of about 10% can be expected as long as you’re investing over the long-term and are prepared to weather the ups and downs of the market. Here are five simple tips to help you on your way to stock market investing. 1. Don’t bother trying to time the market. It is extremely difficult to know where the stock market is headed in the short term. There are so many factors involved, including the economy as well as emotional factors like greed and fear. All of these play an important role in determining the price of an individual stock, as well as the movement of the stock market as a whole. Instead of trying to get a homerun by magically timing the market just right, we recommend you look at this as a long-term proposition and become a regular purchaser of stocks. You can simply invest a certain percentage of your savings every month, or every few months, into the stock market. One situation where you can time the market to some extent is when the market values are lower and everyone is scared about the future. This may be a great opportunity for you to purchase promising stocks at lower prices, but you still have to stay in for the long term if you want to maximize your chances of seeing a profit. 2. Remember to diversify. I remember someone saying that Warren buffet does not diversify, and he is one of the richest men in the world because of his stock market success. Well, let’s face it. We are not Warren Buffett. Most of us do not have the time, knowledge, experience, or the inclination to become a master of stock market investing. Even if we tried to become one, the odds are against us if we simply focus on a few of our favorite stocks and never purchased other investments. For most of us, it is a wise thing to invest in a variety of different companies, both large and small, and in different industries throughout the world. It is also wise to invest in other areas besides the stock market as well. 3. Keep a close eye on fees. When trying to calculate your return (or potential returns), don’t forget to consider the cost of trading. Be careful when using a broker or so-called financial advisor who is simply trying to earn commissions by encouraging you to buy and sell more often. Keep your fees to a minimum, and look for a financial advisor who looks at your entire portfolio and gives you objective advice. 4. Be careful with taxes. Like many have said before, it’s not what you make, it’s what you keep that’s important. Remember to consider federal and state taxes when you are trying to decide whether to sell particular investments at a certain price. Also consider contributing to retirement accounts that can provide tax advantages. If you invest outside of retirement accounts, always focus on what you would make after taxes. 5. The odds are against you when trying to pick the big winners. Yes, you could pick up a stock like Microsoft that ends up being worth many more times what you paid for it. However, the odds are against this, and you would do well to consider a mutual fund that invests in a large number of stocks and is managed by an experienced full-time manager. Joshua is an avid researcher and enjoys writing about many topics, including health and fitness, real estate, business, and investing. Please visit his site for more information on outdoor furniture sets at http://outdoordiningtables.org today. Tags: Market, Stock, Success View this post on my blog: http://stocktips.valuegov.com/5-keys-to-stock-market-success/