10 Tips to be a better stock market investor
Investing is one of the best ways to build wealth. Use these tips to make smarter investing decisions.
1. Buy stocks when they are down.
So if you buy a $100 stock when it's at $50, and it goes to $100 (which it will eventually), you just made 50%, even though the stock initially went down.
The key is to make sure you are buying good companies, not ones that are going out of business.
Also, don't sell them until they go back to where you bought them (or higher). Then sell some and hold the rest forever.
For instance, Amazon has gone from about $400 to about $1,800 in 20 years. But if you would have bought it when it was at its lowest point ($106) and sold some when it hit $1,800 you'd still be making money even though the stock is now down from its peak.
Here's a website that shows every company traded on the NYSE and their historical price charts so you can see what I'm talking about: https://www.jpmorganchase.com/corporate-information/investor-relations/financial-reports/historical-price-charts?page=2#chart_type=line_chart_with_data_labels_and_legend=false&chartType=Line&compareBy=%3Cselect+year%3E2016%26amp%3Bmonth%3D11+from+Historical+Price+Chart+for+SPX&filterByIndustryGroup=All&filterByIndustryGroupValues=Retail+Distribution&filterByIndustryGroupValues=Consumer+Discretionary&filterByIndustryGroupValues=Consumer+Staples&filterByIndustryGroupValues=Healthcare&filterByIndustryGroupValues=Materials&filterByIndustryGroupValues=Financials&filterByIndustryGroupValues=Technology&filterByIndustryGroupValues=Telecommunication Services&filterByIndustryGroupValues=Utilities&sortDescendingMonthYearAscendingYearDescendingYearAscendingMonthAscendingMonthYearAscendingYearAscendingMonthYearDescendingMonthYearDescendingMonthYearAscendingMonthYearAscendingWeekDescendingWeekWeekDayFromToFromToFromToFromToFromToFromToFromToFromToFromToFromToFromToTodayTodayTodayTodayTodayYesterdayYesterdayYesterdayYesterdayYesterdayYesterdayYesterday yesterday!all!SPX!^SINX;SINX;SINX;SINX;SINX;SINX;SINX;;0;;0;;0;;0;;0;;0;;0;;1;;1;;1;;;;4;;;;4;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;; -2.83800e-06; -2.87200e-06; -2.91600e-06; -2.92200e-06; -2.93200e-06; 1242292000|1262916800|1265606400|1271558000|1275804400|1281877600|1289342000|1293953200|1299170800|1306189600|1313704000|1322630000|1332369600|1342078400|1351483200|1360188000|1368985600|1378893200~ 2014112900201411192014111820141117201411162014111520141
No comments.