Is there anyone among us, who doesn’t wish to make money when they invest? it’s doubtful that there is however many people are fearful of the stock market, and this might simply be based on your own investing thinking. While I can’t answer that specific question, I can advise that you make certain crucial decisions before making your first investment, since no one should invest with scared money. I’m very enthusiastic about what will happen in the coming fiscal quarter, however everyone should first take stock of their own financial health and requirements.
What is your mortgage payment? What taxes do you owe? Do You have loans and/or credit card debt? What are your daily/weekly living expenses? Do you have an evergency fund in place (crucial)? What expenses are involved with transportation? Do you have leisure or entertainmy expenses? Are there student loans owed? What other obligations do you have to family or friends?
When we begin thinking about investing, we need to first look at our own financial situation to determine what amount we can safely invest each month. It’s always wise (that should read crucial) to invest with your surplus, and not your rent (by rent we mean any monthly expense you know will be spent).
In order to accomplish this and not invest scared money, it’s wise to first save (put aside some capital), and use that money to invest with. How much you decide to put aside is your decision, but many financial experts recommend 10% as an emergency fund, then an additional 10% for investing. Different people will have different takes on these suggestions.
Depending upon whether or not, you have children, or a spouse, always consider the needs of your family before making an investment. While we strongly suggest investing, we do not want you to put your family in jeopardy, because no matter the best intentions, sometimes things do go wrong. Be certain that your needs, and the needs of your family, including insurance, shelter, utilities, and debts are paid, then consider your investments.
We are each individual’s, and deal with life in different ways, many of us enjoy the riskier investments, while others take a more conservative route. Take the time to determine what type of investor you are, then slowly but surely expand your investment horizons. While we recommend penny stocks as an excellent part of your portfolio, they are certainly not for everyone, and that is a decision you’ll need to make personally.
There is a piece of investment advice that has stood the test of time, and that is to never put all your eggs into one basket. While the niche that has brought significant returns to my portfolio or penny stocks, I’m also will diversify and recommend that you be also. No matter your intelligence, or information gathering abilities, there will always be fluctuations that you have not planned for in the market.
Is crucial before buying a stock, that either you do proper research, or be a line with an expert, or pennystock newsletter that understands the market. Over time, you will find that many of your most fruitful investments, or the ones not recommended by most brokers. Stockbrokers, just like investors, are either risktakers or conservative investors. We believe a blend of the two is why can help increase your nest egg the quickest.
Never chase a losing stock, this is most often throwing good money after bad, it is much better to take your losses, learn from your mistakes, and live to invest another day. While we have seen many penny stocks rise as much as 25% in a single day, many continuing to increase 100, 200, even 500% in a week, this is not always the case. When you’re on board with a winner, take your profits, reinvest and celebrate your success.
