If you are a faint at heart and get disheartened then the stock market is not for you. What I mean is that if you lose heart when you are losing money then you should not be in the stock market for money. Your best bet then is to put your money in fixed income instruments which assure you some amount of returns and there is no risk of a loss. That said the fact of the matter is that the money you will make there is nothing given the amount of money the stock market will be able to make for you.
Let me give you an example let us say you invest about $1000 every month in the stock markets and for once assume that the market is falling. You will loose some amount in that falling market but yes in longer term you will gain. You will gain because of the fact that you know the basic principle that if something goes down it has to come up and vice versa. What means to you is that if you are a beginner, never ever try to get into the short term game and always have a long term horizon for making money.
This will entail you doing two things never check your portfolio positions on a daily basis and also once you have decided that you will invest in a portfolio of good stocks then keep on investing in them every month even if they are down as that will average out your holding costs as well as give you hug upside amounts once the stock starts to pick up. There have been various theories for and against but if you look at successful investors almost everyone has made huge amounts of money in the long run and not never in the short term.
If you are serious about stock market do not get discouraged by short term blips in the market. Keep investing and you will make money. That begs another question as to how disciplined are you while investing. This means that if tomorrow you have a priority of buying new pair of sneakers, do not use the money you have set aside for investing. A pair of shoes is definitely important to you but just imagine how many more things you will be able to buy with the money you have invested and it grows let us say three times in the next five years.
The Secrets of Financial Success
The last but not the least important tip is read and read a lot more about stocks and then make an intelligent decision about the stocks. That will mean that you have to make to right stock picks initially to get huge amount of upside in the long run. Pick a wrong stock and you will be doomed.
So go ahead and invest and here is wishing you good times ahead.
