“If you buy a stock without dividends, make sure it’s marketed well so the value increases and you can eventually sell it for a profit. Anything less isn’t worth your investment.” Mark Cuban
Many people want to invest in stocks but are simply afraid to take the plunge. Yet, investing in stocks is essential for individuals to reach their financial goals and to enjoy a life of financial freedom in retirement
However, investing in stocks is a simple process, but not easy to execute. In order to stay on track with your financial goals, it’s important to keep your emotions and confidence in check while investing since one’s behavior in the .
The key thing to understand is that over longer periods of time there is significantly less volatility in the market. Short-term, there is no question that investing in stocks is risky. While you have a chance at larger reward, there is often a greater chance of a massive loss.
This Fidelity Investment video shows how disciplined investing can help you meet your financial goals.
Six rules to disciplined investing which will help you make better long-term financial and invesment decisions:
- Have a long-term investment philosophy and plan.
- Form a prudent asset allocation based on this philosophy.
- Select low-cost index funds to represent asset classes in the allocation.
- Maintain this portfolio through all market conditions.
- Don’t change the asset allocation due to recent market activity.
- Don’t hold back on new investments while waiting for market clarity.
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