Although the stock market is an uncertain place There are tried-and-tested strategies that can help you improve your odds of achieving long-term success.

Investors should first determine their financial goals. For example, saving for retirement, purchasing a home, or funding the education of your children. This will help them decide how much to invest in the market and what type of investments make sense for their situation.

The importance of establishing an emergency fund or paying off loans with high interest prior to investing in the market is also a smart idea. If you do have funds to put into the market, begin with a small amount and gradually increase your investments as you gain experience.

One of the biggest mistakes novices make is trying to time the market, Keady says. Keady believes that no one knows what the ideal time to invest.

If you’re just beginning, it’s a good idea to focus on stocks in firms that you are familiar with. As the legendary Fidelity Magellan fund manager Peter Lynch famously pointed out that you stand a better chance of winning if you bet on companies that have a solid history and strong growth prospects, rather than trying to predict the future.

Avoid online forums and adverts that promote stocks that have a high likelihood of success. In a majority of cases, these are part of a pump-and-dump scheme that involves shady individuals buying shares in a tiny company to boost the price, only to then sell their shares to make money.

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