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Five LIFE CHANGING Investment Strategies

 

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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