10 Free Stock Market Tips Everyone Should Know
Whether you use 1, 2 or all 10 free stock market tips, investing can be scary business. I know this for a fact because I stopped investing in the market for years because of the great recession. However, my step father, who has been successfully investing for over 50 years, quoted Warren Buffet. “Buy when there is blood in the street”. So, I picked his brain and he gave me some free stock market tips to get me investing again. My portfolio and I are glad he did.
Ask For Help – My step father had been through many stock market corrections so when I asked him to help me rebuild my confidence he told me all the horror stories. However, each one of them he survived making money on the way out. He said there are 3 things you need to control. “Fear, Greed & Discipline”.
Know Your Risk Tolerance – One of the first things he asked me when I started investing again was, “what is your risk tolerance”? I said to him on a scale of 1 to 10 I am a 5. I don’t mind the boat rocking a bit but if I see an iceberg I know I got on the wrong ship.
Put Your Toe In The Water – You have to start somewhere. If you wait you lose the potential for financial growth. One of the best free stock market tips I learned is you can’t time the market. That being said I didn’t jump in head first. I put my toe in the (stock market) water to feel the temperature.
Do Your Research – If a stranger came up to me on the street and asked me to invest in their company I would say NO! Then why invest in a company I know nothing about? Especially when starting out. However, there are some successful companies I do know about such as, Verizon, GE and Apple.
Buy When The Market Is Down – When the market is down don’t be afraid to invest. The reality is I don’t have money like Donald Trump. It’s more comparable to Donald Duck. It’s a scary thought to invest when the market is down but I totally understand the concept. Most people let fear control them. If you invest wisely when a little fear hits the masses then you will find success in the long term.
Diversify – Diversification reduces risk by distributing investments between different financial industries, types and categories. That means if you invest in a company from one sector that has hit a bumpy road you can look to another sector to back your portfolio up.
Know The Terms – Ignorance isn’t always bliss. Years ago I didn’t understand investing lingo. I didn’t know what an ETF was. I didn’t know what a P/E ratio was. I didn’t know what an option was. I didn’t know what a limit order was. I didn’t know much when I was reading investing material or watching MSNBC. However, over time I learned more and more about investing terminology to make a more informed decision.
Think Independently – I would love for someone to hold my hand through this whole process and make me a lot of money. Yes my step father has given me many free stock market tips that have changed my life. However, one tip he always says to me is make your own decision. He doesn’t have a crystal ball and neither do I but through education and confidence I can think independently and invest wisely.
You Can Never Go Wrong With Taking A Profit – I love to make money. I am sure we all do but there is never anything wrong with taking a profit no matter what the future holds. That means that if I make $100 on a stock after selling it and it continues to go up in value, enjoy the profit and move on to something else.
Be Patient – Out of all the free stock market tips my step father shared with me, being patient was the best. He made me take a look at dozens of financial charts from 2001 and 2008. The stock market took HUGE hits. However, both times the market rebounded and went beyond the high point of their respective dropping points. Patiences is tough because the unknown is shadowing the future but one of the keys to successful investing patience.
Which are your favorite free stock market tips? Please comment below.