Best of the Week
Most Popular
1. Investing in a Bubble Mania Stock Market Trending Towards Financial Crisis 2.0 CRASH! - 9th Sep 21
2.Tech Stocks Bubble Valuations 2000 vs 2021 - 25th Sep 21
3.Stock Market FOMO Going into Crash Season - 8th Oct 21
4.Stock Market FOMO Hits September Brick Wall - Evergrande China's Lehman's Moment - 22nd Sep 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
7.AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
8.Why Silver Price Could Crash by 20%! - 5th Oct 21
9.Powell: Inflation Might Not Be Transitory, After All - 3rd Oct 21
10.Global Stock Markets Topped 60 Days Before the US Stocks Peaked - 23rd Sep 21
Last 7 days
Bitcoin Price TRIGGER for Accumulating Into Alt Coins for 2022 Price Explosion - Part 2 - 3rd Dec 21
Stock Market Major Turning Point Taking Place - 3rd Dec 21
The Masters of the Universe and Gold - 3rd Dec 21
This simple Stock Market mindset shift could help you make millions - 3rd Dec 21
Will the Glasgow Summit (COP26) Affect Energy Prices? - 3rd Dec 21
Peloton 35% CRASH a Lesson of What Happens When One Over Pays for a Loss Making Growth Stock - 1st Dec 21
Stock Market Sentiment Speaks: I Fear For Retirees For The Next 20 Years - 1st Dec 21 t
Will the Anointed Finanical Experts Get It Wrong Again? - 1st Dec 21
Main Differences Between the UK and Canadian Gaming Markets - 1st Dec 21
Bitcoin Price TRIGGER for Accumulating Into Alt Coins for 2022 Price Explosion - 30th Nov 21
Omicron Covid Wave 4 Impact on Financial Markets - 30th Nov 21
Can You Hear It? That’s the Crowd Booing Gold’s Downturn - 30th Nov 21
Economic and Market Impacts of Omicron Strain Covid 4th Wave - 30th Nov 21
Stock Market Historical Trends Suggest A Strengthening Bullish Trend In December - 30th Nov 21
Crypto Market Analysis: What Trading Will Look Like in 2022 for Novice and Veteran Traders? - 30th Nov 21
Best Stocks for Investing to Profit form the Metaverse and Get Rich - 29th Nov 21
Should You Invest In Real Estate In 2021? - 29th Nov 21
Silver Long-term Trend Analysis - 28th Nov 21
Silver Mining Stocks Fundamentals - 28th Nov 21
Crude Oil Didn’t Like Thanksgiving Turkey This Year - 28th Nov 21
Sheffield First Snow Winter 2021 - Snowballs and Snowmen Fun - 28th Nov 21
Stock Market Investing LESSON - Buying Value - 27th Nov 21
Corsair MP600 NVME M.2 SSD 66% Performance Loss After 6 Months of Use - Benchmark Tests - 27th Nov 21
Stock Maket Trading Lesson - How to REALLY Trade Markets - 26th Nov 21
SILVER Price Trend Analysis - 26th Nov 21
Federal Reserve Asks Americans to Eat Soy “Meat” for Thanksgiving - 26th Nov 21
Is the S&P 500 Topping or Just Consolidating? - 26th Nov 21
Is a Bigger Drop in Gold Price Just Around the Corner? - 26th Nov 21
Financial Stocks ETF Sector XLF Pullback Sets Up A New $43.60 Upside Target - 26th Nov 21
A Couple of Things to Think About Before Buying Shares - 25th Nov 21
UK Best Fixed Rate Tariff Deal is to NOT FIX Gas and Electric Energy Tariffs During Winter 2021-22 - 25th Nov 21
Stock Market Begins it's Year End Seasonal Santa Rally - 24th Nov 21
How Silver Can Conquer $50+ in 2022 - 24th Nov 21
Stock Market Betting on Hawkish Fed - 24th Nov 21
Stock Market Elliott Wave Trend Forecast - 24th Nov 21
Your once-a-year All-Access Financial Markets Analysis Pass - 24th Nov 21
Did Zillow’s $300 million flop prove me wrong? - 24th Nov 21
Now Malaysian Drivers Renew Their Kurnia Car Insurance Online With Fincrew.my - 24th Nov 21
Gold / Silver Ratio - 23rd Nov 21
Stock Market Sentiment Speaks: Can We Get To 5500SPX In 2022? But 4440SPX Comes First - 23rd Nov 21
A Month-to-month breakdown of how Much Money Individuals are Spending on Stocks - 23rd Nov 21
S&P 500: Rallying Tech Stocks vs. Plummeting Oil Stocks - 23rd Nov 21
Like the Latest Bond Flick, the US Dollar Has No Time to Die - 23rd Nov 21
Why BITCOIN NEW ALL TIME HIGH Changes EVERYTHING! - 22nd Nov 21
Cannabis ETF MJ Basing & Volatility Patterns - 22nd Nov 21
The Most Important Lesson Learned from this COVID Pandemic - 22nd Nov 21
Dow Stock Market Trend Analysis - 22nd Nov 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

A Short Guide To Making Your First Stock Market Investment

InvestorEducation / Learning to Invest Aug 14, 2020 - 02:14 PM GMT

By: Submissions

InvestorEducation

Global financial markets have become increasingly volatile amidst the turmoil caused by the ongoing COVID-19 pandemic. This year the FTSE100 saw some of its biggest losses since the stock market crash of 2008. Sure, it sounds a bit like a doomsday scenario, and for some investors, this may very well be the case. On the flipside, however, is that market falls are often the best time to find yourself a good bargain. For the novice investor, the time may be perfect to make your first foray into the stock market as long as you follow a few golden rules.


Acknowledge The Risks

Before venturing into the unknown, you need to acknowledge that by definition the nature of the stock market is highly unstable. Investing is a high-risk game that can lead to loads of anxiety and sleepless nights. Honestly, it’s not for everyone so it’ll be up to you to assess your level of risk tolerance and how much you’d be willing to lose should worse come to worse.

Do Your Research and Choose Stocks Wisely

Bear in mind that by investing in a company’s stock, you’re essentially becoming part-owner of that enterprise. Use online tools to educate yourself on the process of investing and do some background research on the best stocks to invest in. It’s always wise to start small and buy into companies that are well-managed and trustworthy.

Have A Diverse Investment Portfolio

Never has the age-old saying of not keeping all your eggs in one basket ever been more true than in reference to investing in stocks. One of the best ways to manage risk is to invest in a broad range of industries, companies and sectors. This means that if one stock fares badly, at least some of your investments will remain stable. Having a diverse portfolio also allows an investor to make up for losses more easily.

Think Long-Term

Due to the volatile nature of the markets, before you start investing evaluate the purpose of each investment. Do you want some extra funds to supplement your retirement? Is it to help with your children’s college fees? Having end goals will help you decide whether or not to invest in a particular stock and exactly how much to invest in order to reap rewards at a certain point in the future.

Only Invest Using Surplus Funds and Know Where To Draw The Line

Investing in the stock market shouldn’t have an impact on your day-to-day living expenses or the funds you might need in case of an emergency. You shouldn’t let your investments significantly impinge on your quality of life. It’s also important that novice investors don’t get carried away and invest beyond their means, especially after they start seeing positive results. Playing the stock market is a bit like gambling and it can easily backfire if you become greedy.

As we look ahead into our uncertain future and the nature of industries change dramatically, it is important to make sure you do the adequate research, monitor markets and ask yourself if investing is right for you. Consulting experts, through the use of tools such as WallStreetZen's analyst predictions, is also a wise idea when it comes to taking calculated risks with your money. Good luck!

By Kelly Reed

© 2020 Copyright Kelly Reed - All Rights Reserved

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in