How To Invest In Any Market Condition
Is It Smart To Invest In The Stock Market Right Now?
The short answer is yes!
The long answer is investing should be a long-term financial plan that can help you grow your wealth.
While you can profit from some short-term moves, keep in mind that the stock market can be both predictable and unpredictable based on supply and demand.
There’s no one trick to learning what the stock market will do, but we believe making an investment plan—and sticking to it—is the best way to weigh your risk, protect your principal and make gains.
In this article, we’ll explore how to manage your investments and minimize your risk in the stock market so you can enjoy the benefits of investing!
How To Invest In Any Market Condition
Review your finances and create an investment plan
Track the market trends on a daily and/or weekly basis
Prepare for long-term market moves for the best results
Prepare an Investment Plan Based on Your Financial Goals
You don’t have to invest with a large sum of money to be profitable.
However, you should be familiar with your personal finances to understand your current income, and access the risk of any investment decision.
Even if your goal is to simply make more money, take the time to create an investment plan that’s based on what you can afford to risk, and exactly how much you want to gain—as well as where you want to gain it from (i.e. “ethical investing” and other investing opportunities).
Take a look at your checking and savings account and speak with your Financial Planner or CPA to see where you stand with your finances, and how to move forward.
Your investment plan should include your...
Current spending and savings plan
Specific financial goals and risk tolerance
Investment portfolio options for diversification
Learn the Daily Trends of the Stock Market
A common misconception about investing is that you need to track any and all changes in the market every hour of each day.
All you need to do is simply be aware of any new trends happening in the marketplace—and here’s how you do it without losing sleep.
Keep an eye on interest rate and commodity trends. Interest rate news is now a part of the market prices; and fuel, labor and other commodity costs can have an effect on the stock market. Focusing on how these trends can affect your investments will help you navigate any marketplace “tips.”
Stay current on social media trends. Sites like Twitter and Facebook are great for learning about what’s new in the marketplace from trending hashtags and pages dedicated to studying the stock market. However, be wary of listening to rumors that can lead you in the wrong direction.
Spend Time In the Market Instead of Timing the Market
As investing comes with learning your own comfort level in taking on risk, patience can play a huge factor in the outcome. In most cases, it’s more beneficial to make long-term market moves over short-term ones. This is because a company’s past—and sometimes even current—performance cannot predict the future. It’s essential to understand your own expectations with your investments.
Spending more time in the market, as well as having the right type of investments, can help you with obtaining financial security. It’s important that your portfolio investments are true to your financial goals and investment plan.
For example, we recommend investing in a mix of asset categories to diversify your investment.
Investments in stocks, bonds and cash may have different market conditions at any given time, which means one could go up while the others could go down.
By investing in multiple asset categories, you can reduce your risk and get comfortable with your investments for the long haul in growing your wealth.
Need Help With Your Investments?
Fyvie Financial is at your service to help you make smart investments on your way to financial freedom.
We’re happy to help you manage your investment portfolio by working with you and understanding your financial goals.
Connect with one of our Financial Planners today by booking your free discovery call. For more information, read about our investment management strategy by visiting our Services and Pricing page.