Hi there, Bestboy3 at you again! Using the link below, you can keep watch to see your stocks live, and check in with the market.
Here are some tips you need to know before you invest in stocks:
- The market can get very unreliable. One day it could be at a 52-week high, and the next day it could plunge on a steep decline.
- Plan ahead for times of panic. As stated before, anything could happen to the market. Don’t place a huge amount at one time. The more amount leads to the more risk, and it can get dangerous.
- Why I’m buying: Spell out what you find attractive about the company and the opportunity you see for the future. What are your expectations? What metrics matter most and what milestones will you use to judge the company’s progress? Catalog the potential pitfalls and mark which ones would be game-changers and which would be signs of a temporary setback.
- What would make me sell: Sometimes there are good reasons to split up. For this part of your journal, compose an investing prenup that spells out what would drive you to sell the stock. We’re not talking about stock price movement, especially not short term, but fundamental changes to the business that affect its ability to grow over the long term. Some examples: The company loses a major customer, the CEO’s successor starts taking the business in a different direction, a major viable competitor emerges, or your investing thesis doesn’t pan out after a reasonable period of time.
- Avoid trading overactivity. Check in around once every quarter, as you will get a quarterly report. When one of your stocks experiences a sharp price movement find out what triggered the event. Is your stock the victim of collateral damage from the market responding to an unrelated event? Has something changed in the underlying business of the company? Is it something that meaningfully affects your long-term outlook?