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| Photo by Anne Nygård on Unsplash |
so you're thinking about
investing your money
lately but you're worried you
might not do well or
perhaps you've already
started investing for a while
but now you're scared
that you're doing something
wrong and as a result won't
get your desired outcomes
whatever your case is
ultimately you need a sort of
assurance that you'll not
lose your money
at the end of the day whether
you're a beginner or a
long-time investor
you'll all need the same thing
in order to secure your
money and thrive in the
stock market and that is having a
few good strategies to
rely on it doesn't
matter what your financial
status is whether you're
rich or poor if you
don't know a good strategy chances
are you're not going to
survive long in the
stock market eventually you'll
either lose a ton of your
money or worst case
scenario all of it if you're not
careful investing can be
your downfall but
when done right it will be your
glory but fear not
because we're here to help
you out on your investing struggles
with a few good
strategies that have been
proven to be very much effective by
numerous other investors
hey welcome to stock
market made today we'll talk about
investing strategies that
will change your
life
do your own research just like work
investing takes a lot of
knowing things such as
learning basic financial
terminologies and how the
stock market works
it's very important to do your own
research before getting
into these things
sure you don't have to know
everything but you need
to know important
stuff that will help you
succeed doing your own
research can help you
figure out what you need to do next
or what your next move is
going to be like it
helps you come up with your own
strategy as well moreover
to survive these
things you need to understand
exactly what you're
getting into if you're
planning to start investing soon
make sure that you do not
get into this blindly and really know what you're
going to be up against
once you enter the
stock market be your own coach and
educate yourself read
about value investing
look up articles about your
financial world to
conclude don't just take
what others say or recommend at
face value inform
yourself in order to gain more perspective on things
that way you'll know what
you really want to do number four longer time in
the market this strategy
will revolve around the time you spend in the market
instead of wasting your
energy trying to time the market do your best to make
your time the market
count timing the market hasn't been very successful for
any investors in the past
and even now instead of looking out when the right
time is to invest you
should focus more on how to invest effectively investing
is less about what time
frame you invest and more about how long you invest stop
trying to find the right
timing because chances are it's not gonna work it
hasn't worked for anyone
and it will not work for you now it is without a doubt
that the stock market is
unpredictable making it hard to time perfectly so it's
much much better to turn
your attention to investing wisely as much as you can
and for as long as you
can number three long-term capital gains
versus short-term capital
gains the next strategy we're going to talk about
revolves around the
knowledge of taxes and how it can affect your experience in
the stock market the
problem with most beginner investors is that they tend to
buy and sell stocks most
of the time they spend the majority of their time in
the market buying and
selling and while this can be a fun and exciting way to
invest we wouldn't advise
you to do this frequently the reason for this is
because when you buy and
sell stocks all the time there's a high possibility that
you will be subjected to
a large tax bill especially when selling stocks for
a price higher than you
bought it for basically when you do this you will have
capital gains capital
gains results from the increase in capital assets value when it's sold invested
assets as well as personal assets can generate capital gains there are two
types of capital
gains one is long term
and the other is short-term in short-term gains a person makes a profit from
selling personal or investment property held for less than a year while the
long-term capital gains
are profits when you sell
an asset held for more than a year take note taxes on the two capital gains
differ greatly short-term gains are usually taxed at ordinary income so it will
depend on how
much salary you earn
annually the rate range is between 10 to 37 besides that you might be liable
for state taxes as well on the other hand long-term gains are usually less
taxed
than short-term gains now
you can see why investing in long-term is much more
preferable this is a
simple strategy that will help you pay less taxes and
gain more money in the
long run number two prioritizing index funds when
investing it's so much
better to be more consistent in putting money into index
funds than into
individual stocks as much as possible only put extras into
individual stocks think
of index funds as a safer investment many investors
find it ideal to
prioritize their index funds rather than individual stocks when
you've been in the stock
market long enough you will know the reason behind
this if not then here's
why when you start out investing you might not always
be that knowledgeable
when it comes to the nuances of the stock market which
means it'll likely be
hard to predict company growth however the case is not
the same with the economy
every year there's at least an assured positive
growth in the us economy
hence making them more if not entirely predictable
than individual companies
some companies might thrive but some might not flourish
which means it's going to
be hard to rely on individual stocks although there
may be some corrections
in the annual growth of the economy it doesn't really
matter if you just
consistently invest in this sense investing in index funds
is like investing in the
economy which is far more assured of growth than
individual companies
could ever be knowing this we encourage you to put out
the bigger portion of
your money into easy index funds and then put all the
other extra funds you
have into your selected individual stocks
number one starting early
as possible finally this is very important and can
have a really big effect
on your results in the future if you have the means to
start your investment
journey early on then we highly suggest that you do trust
us you'll be so thankful
that you did so when the time comes investing in your
20s has shown to be
better for your investment at folio than when you start
investing in your 30s or
40s however it's even worse for those who start in
their 50s or 60s
researchers have revealed that the time you start
investing has way more
impact on your money growth than the amount of money
that you invest what this
means is that the longer you are in the stock market
the greater your
potential profits will be why this happens is because investing
for a long period of time
gives you the benefit of compound growth compound
growth is how an
investment grows on average over the course of several years
let's say for example
lisa started investing when she turned 25 years old
with a total of 200 a
month meanwhile john started when he turned 45
years old with the same
200 per month however because lisa started earlier by
the time she reaches 65
years old her contribution would have reached up to 96
000 but john will only
have contributed a total of forty eight thousand dollars insane isn't it but
that's just how the stock market works every year you delay
investing you miss out on
an opportunity for amazing exponential growth which is
why we urge you to start
investing immediately if you haven't done so already but that's only if you
have the funds to do so if you can make sure to start as early as possible in
general the longer you stay in the market and the longer you invest the greater
the effect it will have in your portfolio
you don't have to invest
a lot of money you just have to be persistent so if you can start opening an
investment account now and that's about it for today
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