With everyone talking about diversifying, being a millionaire and securing the bag, it will be no wonder that you’re considering investing in the stock market. Honestly, it’s not a terrible idea. It’s actually a good thing, because one thing we are sure of is that investing in the U.S. Stock market will help protect your money from inflation and maximize your income. Just before you go right into it, here are some tips to guide you.
Tips to guide you in investing.
- Due Diligence: Do your due diligence before buying a stock, don’t just follow advice from friends and family. Be sure you know where you are putting your money and understand the risk involved with investing. To further help you, we have a list of resources to help you in investing. You can also join our weekly Watchlist newsletter when you make a deposit in your Bamboo wallet.
- Buy what you know: Be like Warren Buffett, invest in companies that you understand what they’re doing, how they make money and where their industry is headed. You can start off buying companies you’re familiar with, like Google, Facebook, Apple, Johnson & Johnson.etc. Check them out on the Big stable companies on the featured themes on the Bamboo app.
- Paper trading: Just before you jump into buying a stock, you can watch the stock for a while with the Watchlist feature on the Bamboo app. This feature allows you to add stocks you’re interested in but not buying, follow up their news and other details you’re interested in before you buy them. Stocks you’ve also bought will be added to the Bamboo Watchlist.
- Reevaluate: Always take time to reflect on your stock game. Are you making money in an ETF? Or are you losing money in an electric stock? Figure out what’s working for you and stop doing what isn’t working.
- Don’t keep filling a leaking basket: In order to make up for their mistakes, most investors keep putting in more money in a falling stock, instead of taking a pause on purchasing. If a stock is falling, it is best to watch it and find out the reason it’s falling rather than buying more of it, because the share price is now lower.
- Average Up: When a stock goes up, study why it increased and if its increase looks sustainable, make more purchase of the stock. Putting more funds into a winning stock often pays off.
For more investment advice, here’s a free guide on how to invest like the legend – Warren.