Whether you want to someday make investment your full-time job or you’re just dabbling for now, everyone has to start somewhere. However, as with almost any activity, mistakes are most likely early on – and when it comes to the stock market, those mistakes can have serious financial repercussions. In this article, we look at a few steps you can take in order to avoid these pitfalls and boost your chances of great returns.
Make the Most of All Available Practice and Research Tools
It’s tempting to plunge in and ignore all of the bells and whistles offered available on investment apps and platforms, but these special features should actually be a key consideration when choosing the best resource for your needs. Many offer the likes of paper trading tools, enabling you to practice trading and develop your skills and techniques without spending real money. They may also have knowledge centers and other sources of information that will teach you how to calculate probabilities, develop algorithms and discover patterns so that your approaches will be more informed and therefore more likely to yield impressive results. Be sure to compare all the features of a trading app or platform before you choose one.
One of the most important things you can do before you start trading is to set yourself some strict ground rules and limits. Deciding on a strict daily, weekly or monthly budget is a great way to make sure you never lose more than you can afford, and sticking to a certain field or type of investment will allow you to develop expertise in that particular area may prevent you from getting out of your depth.
Investigate the hidden costs and charges of any platform or interaction before you commit to it. For example, many newcomers to the world of investment don’t realize that they will be charged commission, often called a brokerage fee, every time they buy or sell shares. Make sure that you consider and compare all costs well in advance, and try to use tools that will make your experience a little more straightforward, not to mention affordable. A great option is to see here and look to use a stock trading mobile app that offers a commission-free trading platform, as this will help you to avoid spending too much outside of your intended transaction.
Actively Seek Information and Advice
Try to stay in the loop about the latest movements within the investment world. Things can change significantly in just a few hours, so there’s no excuse to coast along making vaguely educated guesses. Friends who invest can be very handy to have around, as you can share news and advice to improve each other’s chances of success. You should also regularly read up on the latest updates – but be sure to always double check where your information is coming from, as bias is common.
Unless investing is your full-time occupation, you shouldn’t let the stock market occupy your every waking thought. It can be easy to keep a tab open at work and glance at it every few minutes to see how your shares are doing, but this can become unhealthy. Obsessing over your investments can lead to overthinking, and this in turn can lead to poor decision making. Try to pick a specific period each day during which you will interact – perhaps making your decision based on the stock market’s busier and quieter hours, then leave it alone.
Updated October 11, 2020
At WallStreetSurvivor, we subscribe to dozens stock recommendation and advisory newsletters. There is ONE newsletter that is constantly outperforming all of the others–The Motley Fool Stock Advisor.
ONE of this year’s Motley Fool Stock Picks Has Already quadrupled, ONE has tripled, and another TWO Have Already Doubled in just 9 months of of 2020!
We have been tracking ALL of the Motley Fool stock picks since January 2016. That’s 5 years and 120 stock picks. As of Friday, October 9, 2020 the Motley Fool’s January 2 stock pick (TSLA) is up 404%, their March 19th pick (ZM) is up 297% in just 6 months, and another two have more than doubled. In addition, 9 of their 2019, 9 of their 2018, 10 of their 2017, 9 of their 2016 and 14 of their 2016 picks have also doubled. Most impressively, over the last 5 years that we have been tracking every recommendation, their average stock pick is up 172%. That beats the SP500 by an average of 126%. And that’s even accounting for all of this COVID mess that has wreaked havoc on most stocks. BUT, the Fool has done so well because they have quickly identified stocks this year that will perform well in the post-COVID world. THAT is how the Fool consistently does so well–they adapt and constantly pick stocks before everyone else realizes the opportunities.
- CrowdStrike (CRWD) — June 4, 2020 pick is already up 49%
- Shopify (SHOP) – April 2, 2020 pick and it is already up 216%
- Zoom Video (ZM) – March 19, 2020 pick and it is already up 297%
- DexCom (DXCM) picked Feb 20, 2020 right before the market crashed and it is still up 28%
- Tesla (TSLA) picked January 2, 2020 before the crash and it is up 404%
- HubSpot (HUBS) picked December 5, 2019 and it is up 109%
- Netflix (NFLX) picked November 21, 2019 and it is up 73%
- Trade Desk (TTD) picked November 11, 2019 and up 218%
- Zoom Video originally picked Oct 3 and it is up 541%
- SolarEdge (SEDG) picked September 19, 2019 and it is up 241%
Now no one can guarantee that their next picks will be as strong, but our 5 years of experience has been super-profitable. They also claim that since inception, their average pick is up 529% and now we believe them. You sure don’t want to risk missing out. Many analysts are saying that we have passed the bottom of this COVID crisis and stocks will recover quickly. So make sure you have the best stocks in your portfolio.
Normally the Fool service is priced at $199 per year but they are currently offering a NEW SUBSCRIBER DISCOUNT of just $99/year if you click this link.
GET UP TO $1,000 IN FREE STOCK
WHEN YOU OPEN A ROBINHOOD BROKERAGE ACCOUNT
Robinhood was the first brokerage site to NOT charge commissions when they opened in 2013. They just past 10,000,000 accounts and to celebrate they are offering up to $1,000 in free stock when you open a new account.
Here’s the details: You must click on a special promo link to open your new Robinhood account. Then when you fund your account with at least $10, you will receive one stock valued between $5 and $500. Then, you will get a link to share with your friends. Every time one of your friends opens an account, you will receive another free stock valued between $5 and $500. Click here to learn more about this Special Robinhood offer.
Claim your free stock NOW (before it’s too late)