Investing in stocks is the most common form of investing. If you haven’t done it, this is the best time to start investing. For newbies, it can be really challenging to find the best investment for you. There are different options out there—stocks, cryptocurrencies, forex, bonds, mutual funds, commodities, and so on. But this is not a barrier for you to stop investing. There is so much more to learn in the market. There are hundreds of investing skills for you this year.
If you are still looking for effective investing skills to use in your strategies this year, here are my recommendations.
Fundamental analysis is done by studying the performance of the company, its income statement, balance sheet, future plans, and so on. This strategy has something to do with how the company performs and how much is its sales and income. This should be one of the skills you should learn in 2021. With this, you don’t need to read charts or guess what stocks are going up. You don’t need to risk your money buying penny stocks or stocks that don’t have value at all. With fundamental analysis, you will end up buying companies that are more stable and give high returns.
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The heart of why I do these seminars is I want to build a generation of Filipinos with the right foundation in stock investing. I want to bring smart investing to every Filipino around the world! If you would like to know more about how you could time the market check out the training below.
Technical analysis is what you use to read the charts. The trend lines and candlesticks might look stranger to you at first but once you study them, it’s easier for you to spot possible breakouts, failed breakouts, support, resistance, and reversals. It is what you use to identify patterns as well. There are a lot of patterns to study. As early as now, you should be starting to learn those, especially the basics. MA, RSI, MACD, and other indicators are essential in technical analysis. These are the basics and you should learn first all of them.
If you are planning to invest for the long-term, I suggest you try dividend investing. Dividend investing is when you invest in stocks that pay dividends a year. For example, if you invest in the local stock market, companies like PLDT, Globe, and ALI pay dividends every year. This is on top of the gain you will get from the increasing stock price. Dividends are percentages you get from the income of the company. So, the higher the income of the company is, the higher your dividend is.
This is one common mistake I see from beginner investors. They tend to leverage their trades in the hopes of earning big in a short period of time. Instead of leveraging your trade, leverage your time. Allocate more time to study stocks, technical analysis, and fundamental analysis. Take your time to create strategies. Don’t add risks to what you are already risking. When investing, you only invest what you afford to lose. Don’t leverage them if you don’t want to lose your money overnight. Leveraging is risky and it makes your trade twice or thrice risky. Manage your risk and leverage your time. To invest in Bitcoin, click this.