The idea of investing in the stock market comes along with the stigma of risk. And why wouldn’t it? So many individuals have lost their life’s savings while they try to invest in the stock market. But we often don’t realize that those individuals reach such a position due to bad investment decisions. It may seem tough to invest in the stock market but honestly you just need the desire to have a secure future and the discipline to get there.
In a world where people are losing money in the stock market, several are making sound investment decisions and bearing great fruits of great returns and a secured future.
So the moral is; do not be afraid to make investments in the stock market but rather be mindful about making prudent and sound investment decisions.
And no, you don’t need to be an expert in the stock market to invest in the stock market. All you need is the discipline and properer tools to help you get there.
Follow the 50:30:20 rule.
The 50:30:20 rule is probably the most definitive rule taught to manage your wealth. Most gurus advise this wealth management rule and apply it too. It’s the best way to be disciplined with your investments while catering to your responsibilities.
The 50:30:20 rule implies that 50% of your income is solely for your needs, 30% is strictly for your wants and desires, and 20% should be dedicated to your savings and investments.
Have a purpose behind to invest in the stock market.
While investing, try to have a set goal or a reason behind your investment. It could be anything; maybe you want to buy a house or probably a car, or it could be for a secure future. Whatever it is, determine your goal. Defining a purpose helps you stay motivated and disciplined to reach that goal.
Do not hesitate to take.
Putting your savings in the hands of someone else can be a hard thing to do. But when you have specific investment goals that you want to meet in the future and don’t have all the knowledge and framework to get there, you can always hire a professional to do that for you. Please do your research, find the right brokerage firm, and let them help you manage your wealth. The best thing about trusting a brokerage is they have the experience and the expertise to help you reach your investment goal.
Understand and study the stock market and the psychology of investing while making your own investment decisions.
The privilege of living in today’s day and age is that knowledge is at your fingertips. Read books and articles, watch videos, and thoroughly study the stock market before investing. Understand the meaning, advantages and disadvantages of investing in different stocks available in the market. Like they say, “Knowledge is the key to success.”
Few books you can read to gain a foundation about the stock market and create a strong mindset:
Intelligent Investor – Benjamin Graham
How to Make Money in Stocks – William O’Neil
Common Stocks and Uncommon Profits – Philip Fisher
Psychology of Money – Morgan Housal
Rich Dad Poor Dad – Robert Kiyosaki and Sharon Lechter
Take trusted guidance.
Allow yourself to take the guidance of someone with experience and who understands the market thoroughly. If you do not know someone like that, you can also join trading communities to get valuable advice.
You can also use trusted apps like the Cycle app. It gives you free BUY, SELL signals to help you make more profits and save losses.
Following signals of an app like Cycle also gives you the chance to make more profits and save losses which will thus lead you to better investment decisions.
