Stock Investing 101

Did you know that a single good investment can actually change your life, financially speaking? Referred to as business-like investing, the idea of buying a good stock and hanging on to it for a long time is one that is considered “tried and true,” at least for the most part, in the investing world.

Just think of the people who invested in Coca-Cola before it became a soft drink giant, or the people who invested in McDonald’s when it was just a little neighborhood burger stand. These are people who benefitted greatly from the type of investing described above.   

Of course, not everyone will get as lucky as these people, which is why it’s important to invest in such a way to avoid “wipeout” just in case the company you’ve chosen doesn’t fare quite as well as McDonald’s or Coca-Cola.

If you’re going to get lucky with your investing, you probably want a diverse investment portfolio. Go for the “business-like investing” strategy described above, but don’t make it your only method of investing. Also, research stocks and carefully assess the risks before you buy, and make sure you’ve got some good professional financial help, preferably in the form of an investment adviser, on your side.

Some good general advice to follow when it comes to investing includes:

·         Expect mistakes/ugly surprises and have a plan in place to help you recover from them

·         Be very selective and careful about the stocks that you buy

·         Hold onto stocks, through good times and bad, except in some rare circumstances when you will want to “get out while you can”

·         Don’t buy into stocks that promise you’ll “get rich quick;” nobody can make and keep those types of promises

If you can follow these basic but effective investing tips and get the right financial help on your side, then there’s no reason you can’t enjoy successful stock investing.