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Today you have the opportunity to learn how to make money in the stock market. We have a nice classic from The Peny Hoarder showing you how to win with stocks titled:
Want to Be a Better Investor? Ignore What the Stock Market Is Doing
First my take on the topic:
How to Become a Good Stock Investor
A good stock investor always comes out a winner regardless of the market trend.
What are the most important things a beginner investor should know?
- The stock market is always moving either upwards or downwards
Sometimes the market is up, and other times the market is down. And that is normal market behavior since time immemorial.
And that is the first important fact a beginner investor should know.
- There is no specific time to invest in stocks
A good stock investor has a steady investing schedule. This, regardless of market dynamics.
If the market is down, he or she is still investing. If the market is up, he or she is investing. A good investor is active when the prices are low and when high.
His or her investing decisions are least influenced by, the current price level.
- A good stock invest has a long term investment strategy
Investors who make money on the stock market have always had a long term strategy. That is the reason they make money.
When the prices are low, they don’t panic. They don’t sell their stocks because of a recession. They hold on because they know the market can only rise.
Thus they hold and wait. They are patient.
- Dollar- Cost Averaging
Investors who win big know something about dollar-cost averaging. And dollar-cost averaging is the reason good investors win with stock investing.
What is Dollar-Cost Averaging?
According to Wikipedia:
” Dollar-cost averaging is an investment strategy that aims to reduce the impact of volatility on large purchases of financial assets such as equities.”
And according to Investopedia:
“Dollar-cost averaging is a simple technique that entails investing a fixed amount of money in the same fund or stock at a regular interval over a long period.”
The bottom line:
The dollar-cost averaging is a good strategy for beginner stock investors.
More Americans than ever are feeling insecure about their finances and struggling to make ends meet as the coronavirus pandemic takes hold of our health and economy. According to the All-American Impact Survey from Peak Prosperity , 49% of Americans reported a cut in income due to the pandemic […]
Personal Finance Rules It’s OK to Break During a Pandemic
by: Andrea Woroch
Here is my take on Andrea’s personal finance advice:
Is it ok to Break Personal Finance Rules Under Any Circumstances?
Andrea Woroch writing for MSN wrote an informative personal finance article on 9/9/2020. The title is as you have seen above, Personal finance rules its ok to break during a pandemic.
And I went, oh my God Andrea, should I go down that route?
Andrea tells me, always pay your bills on time. I ask, “does Andrea know that I am jobless and with zero income because of a pandemic.”
Doesn’t he know that I live from paycheck to paycheck? Where the hell will I get money to “always pay my bills on time?”
Was Andrea’s article giving the right advice to a population suffering due to COVID19?
The answer is no. It all depends on the economic standing of an individual. How do you earn your money?
The majority of folks live from paycheck to paycheck. They can’t afford to lose a single working day because that would mean hunger.
People who survive from paycheck to paycheck have no savings. They have no financial rules to break because they have no financial choices to make. They have no retirement funds.
Was Andrea speaking to this group? No. He was speaking to people who could afford to make financial choices during a pandemic. He was talking to people who didn’t lose much of their incomes.
Andrea’s article gives sound personal finance advice to his target audience. The group whose earnings are above the national average.
Is it Ok to Break Personal Finance Rules Under Any Circumstances?
The answer is NO if you can help it.