• Skip to main content
  • Skip to secondary menu
  • Skip to primary sidebar
  • Skip to footer
  • HOME
  • RECOMMENDED BOOKS
  • FREE TOOLS
  • CONTACT US
  • ABOUT

The Fortunate Investor

Investing, Business & Personal Finance For Wealth Builders

  • Save Money
  • Invest Your Money
  • Get Out of Debt
  • Making Money Online
  • Family & Money
  • Taxes
  • Business
  • Retirement
    • Retirement Calculator
Home » 5 Investment tips for investing in stocks

5 Investment tips for investing in stocks

November 17, 2020 By The Fortunate Investor | This article may contain affiliate links. For more information visit our Disclosure

Tweet
Share
Pin
Share
Share

What is the stock marketInvesting in stocks is a very reliable way to earn good money. However, it is not always the case if wrong investment decisions are made. This is tricky because it all depends upon the fluctuating stock prices. What is required is a present state of mind and gut feeling to go with. Some interesting tips can help you in buying the shares but before we dive in, always remember to choose the company wisely. This is where all the difference lies. Below are some tips you can use before investing in stocks.

Be clear on how to want to invest

There are two options on how you can invest in stocks. One; through a broker and second; Robo advisors. The brokers are there to help you with your investment by providing the best options for you and let you decide on what you want and where you want to invest. They charge a commission fee for their services. It is also equally important that these brokers are regulated and legal for reliability purposes. For example, in the UK there are these Financial Conduct Authority (FCA) approved brokers who are assisting the investors. You can choose the best UK forex broker strictly regulated by FCA and you are good to go. On the other hand, the Robo advisors are financial companies that will invest your money based on the goals you provided. They will make the analysis themselves and make the investment decisions on their own that are in your best interest. This is like low-cost investment management services they provide against a fee charged. Again, the decision is yours. How do you want to invest? But be very clear on this before moving further.

Remember you are picking companies not just stock

Yes, it is true when you see so many stocks trading on the exchange, you are attracted to picking stocks giving you the best rates and big returns. But remember the larger picture. You are not just buying random shares but also becoming part-owner of the company, shares of which you have bought. You should be focused on the information of the company for example how it operates, the partners and other stakeholders involved, its competitors, long-term strategic goals, etc. The company should be adding worth to your portfolio. So remember that stock picking should be the last thing you do.

Make sure to plan ahead

Making an impulsive decision regarding some stocks, buying or selling can lead to investing gaffe. You must make decisions based on their long-term impact to help you in needy situations in the future. Time is not always the same. Troubles can come to anyone at any time. For this, you must have plans and backups. Make journals. Write down the strategic importance of each stock in your portfolio. See why you are buying certain stocks. Is there any opportunity you see in the future? Then write which stock would be best if sold and what times the selling would result in profits in regards to the future. Is splitting up the best option? Is the company doing alright in terms of strategy and impact on the share value? Keep an eye and make your plan!

Take your time in buying

stock ticker

That’s right! It is not mandatory to invest in the amount you have allocated for stocks all at once. The right way to invest is gradual. Some buying strategies to help you are as follows

Dollar-cost average

This means you have already set an amount to be invested but at regular intervals. Brokers provide you with this service and then weekly, monthly, or however, you want to. An automatic investment schedule is set up and for one period your set amount buys more stock when cheaper less when prices go up.

Buy in thirds

This strategy implies that you divide your whole investment amount into three parts and then invest the three amounts at selected points in time. For example, you first invest one part before a product is launched and then invest the second part after the launch. It also helps you retain the remaining amount if, for example, the company did not do well, you can invest the remaining amount elsewhere.

The basket

This is for minimal risk factors. Buy in many companies you want to because you could not decide on one. Now whichever will not do well will be compensated by the company which is doing well.

Avoid overactivity

The more you keep an eye on the scoreboard the more there is a chance of making impulsive and wrong decisions. Once in a quarter is enough to see what’s happening with your shares. When you are constantly seeing the trading of your stocks, you can be super reactive to even small incidents that otherwise if neglected is better off. What may look off right now may not be off in the future. That is the whole game with the shares. They are meant to fluctuate before settling down and you must keep away from all that activity to avoid making quick decisions.

Stock investment is tricky and is all about share price volatility. Learn about the do’s and don’ts from the investment point of view and keep in mind the above-mentioned tips before investing in stock. The key point is to be patient and learn about the company. Don’t be focused on quick money. The profits will follow the pursuit once the right track is set by you.

  • About
  • Latest Posts
The Fortunate Investor
The Fortunate Investor at FortunateInvestor.com
The Fortunate Investor is the finance half of the husband and wife duo behind this website. Michael's finance and investment advice is rooted in an MBA and 20 years experience as an entrepreneur, banker, and manager in the financial services industry.
Latest posts by The Fortunate Investor (see all)
  • 5 Factors to Consider When Choosing Life Insurance Providers - April 15, 2021
  • 5 Red Flags to Avoid in a Personal Injury Attorney - April 12, 2021
  • Business 101: Streamlining For Success - March 31, 2021

Primary Sidebar

Popular Articles

34edc93e5d0902b59ea26a14f7e27917

5 Factors to Consider When Choosing Life Insurance Providers

Roughly 25% of adults that have families or significant others do not have any type of life … Read More about 5 Factors to Consider When Choosing Life Insurance Providers

3 Internal Ways To Bring Your Business To The Next Level Of Success

3 Internal Ways To Bring Your Business To The Next Level Of Success

When companies think of growth, they don’t always differentiate between internal and external … Read More about 3 Internal Ways To Bring Your Business To The Next Level Of Success

Property Gurus Keep Their Techniques Secret, But Anyone Can Learn Them

Property Gurus Keep Their Techniques Secret, But Anyone Can Learn Them

Property gurus like to make a lot of noise about what it is that they do. They continually publish … Read More about Property Gurus Keep Their Techniques Secret, But Anyone Can Learn Them

Important Considerations When Starting A Business

Important Considerations When Starting A Business

Starting a business is an excellent goal and dream to have but can also be quite overwhelming … Read More about Important Considerations When Starting A Business

From Browsing To Buying- How To Find The Perfect Real Estate Investment

From Browsing To Buying- How To Find The Perfect Real Estate Investment

Real estate is a popular investment option. While it could be deemed a safe bet in comparison to … Read More about From Browsing To Buying- How To Find The Perfect Real Estate Investment

Footer

TOPICS

SAVE MONEY
INVEST MONEY
REDUCE DEBT
MAKE MONEY
FAMILY & MONEY
TAXES
START A BUSINESS
RETIREMENT

THE FORTUNATE INVESTOR

ABOUT US
ADVERTISE
CONTACT US

The Fortunate Investor focuses on personal finance topics to build wealth. Topics include saving money, investing, managing debt, family and money, taxes, making money, college planning, starting a business, coupons and retirement.

SOCIAL MEDIA

FACEBOOK
TWITTER
PINTEREST
INSTAGRAM
YOUTUBE

Copyright © 2021 Fortunate Investor. All Rights Reserved. | Disclaimer & Disclosure | Privacy Policy | Terms of Service