Posted on 02 February 2012. Tags: stock investing tips
While it is never easy to predict or forecast what goes on in the stock market, most stock investing tips are basic rules. Stock market values can turn on a dime thanks to changing economies and occasional unrest in many parts of the world. Keeping your investments simple will carry you through 2012, as the world continues to emerge from an unsettled economy.
To build a healthy stock portfolio begins by setting clear goals. Determine what percentage of your assets fit into those goals and try not to waver. Research the companies before buying stock in them so you are confident you have allocated your funds well. These are important stock investing tips for first-time investors. Know what you are buying.
Investing in gold is still a good place to put your money, but one of the most important stock investing tips is diversification. It is wise to put your money in a variety of mutual funds, big and small, as well as bond funds, with only a small portion in gold. Diversification will ensure you have a well-balanced stock portfolio. In theory, when one stock is down the other is up.
Consider the phrase “buy low, sell high,” and that is the key to buying and selling stocks. When the market rises, it is time to sell because you will get good value for your investment. Reinvest when market prices are low. This is one of the easiest stock investing tips to remember.
Once you have a core investment portfolio, you might consider venturing off into satellite investing. This is investing small amounts of your asset portfolio into a variety of stocks, usually based on tips or suggestions from others, or simply gut instinct. Satellite investing is a little risky, but if you only allocate 10% of your assets, it may prove fruitful. Keep the “buy low, sell high” phrase in mind as you go forward.
Build your portfolio with confidence and pay attention to changing markets. Stock investing tips vary, but in 2012, the key is to keep it simple and move slow and steady throughout the year.
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