(Newswire.net — March 25, 2018) — The stock market has been in the news a lot lately, with the rising prices piquing the interest of new and experienced investors. Apart from the stock market, the property market and other investment opportunities are seeing good results as well, meaning that it’s a good time to put your money to work and get profits that’ll build your net worth in the short and long term.
Investing is a delicate endeavor though, and it’s something that requires thorough research and awareness of how the markets work. As a new investor, here are 5 questions that you should get answers to before putting your money down.
Is This a Good Time?
The stock market and in fact every other market have periodic changes in the attitudes of investors. Bear markets (where prices are in decline over a period) are followed by bull markets (where prices are on the rise) and you need to be aware of what stage you’re going to be investing in. This applies mostly to short term investments though, since investments over the long term (10+ years) will usually even out.
How Long Will the Investment Be For?
As alluded to in the first point, there are fundamental differences between the strategies involved in investing for the short term and investing for the long term. Be certain of your financial status and how the investments you’re considering will affect your cash flow. That way, you’ll be able to follow your strategies to maximize profit without having to make drastic changes that won’t be beneficial.
Who Will Be Advising You?
Getting investment advice is crucial. Just as you’d want to get advice from your attorney before taking any legal action, the guidance of experienced investment advisors like Sheaff Brock is crucial if you want to be certain you’re making the best choices. When choosing a firm to advise you, be sure to study the terms of the contract so you clearly understand what you’ll be paying as fees and how that will affect your portfolio.
What are Your Goals?
Would you make any business decision without a clear outline of what results you’re expecting from it? Of course not, because that would make it difficult for you to track your progress and know if and when you need to make changes to get things back on track. With investment, you need to set your goals after taking all the factors like your investment amount, costs and the state of the market into consideration, then set KPIs that’ll help you see the bigger picture of how well your portfolio is doing.
How Will This Investment Affect My Portfolio?
Investing in any particular stock can be solely for the reason that it shows promise, but it can also be because it helps you hedge your positions in other stocks or to keep a healthy mix of investments that’ll insulate you from volatility in any industry. Always keep in mind that each trade you make will affect your portfolio and cash flow, so be sure to try to balance things out to ensure the maximum possible security and profitability.