You want to buy low and sell high, but guess what? So does everyone else. If we all had time machines, of course we’d go back to March 23, the day the S&P 500 reached its low and throw money into the stock market. If you’d invested in an […]
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.