When you're on the outside of the stock market and investing it can seem like there are people who are putting their money highly profitable new technology companies that are able to retire off the money that they make in a couple of years. While there are some people who have a natural gift for turning a couple hundred dollars into thousands in the matter of a few weeks, the truth is that for most people investing is a way to make small increases in your net worth over a longer period of time. Here are some tips to help you get into investing some of your savings.
This is not something where you will want to jump in with both feet right off the bat. Even if you have a feeling about a software that's being bought up by every school in Canada for example, or have your sights set on a company's stock that's been steadily rising for a week, you should start small until you start to understand what investing is all about. You will also want to make sure that you're keeping your investments quite simple in the beginning. This is definitely a time when you will want to fully understand where all of your money is going before you sign anything.
Here are some website to visit with some helpful information on the stock market:
Work with a knowledgeable financial consultant. One of the best things that they are going to be able to do for you is just help explain all of the different investment options that you have at your disposal. Some might recommend that you put your money in to RRSPs while others will be leaning more towards mutual funds. You do not need to take every word that your financial advisor says as law but they will usually be able to create a plan for you that's more likely to succeed than if you were to go at investing all on your own.
Invest when the market is low and sell when it's high. One of the biggest mistakes that people coming into investing is that they think that the time to invest is when stocks are rising. But, the truth is that you want to wait until stocks are at their lowest if you're really going to make the most money. Then you wait until things turn around and they start going up again before you sell. You could make enough doing this to be your own boss someday. You just need to make sure you're picking quality companies that will be able to survive the recession and be able to wait until those stocks start rising again. This could even take a couple of years.