Seasoned and novice investors alike are no doubt familiar with one of Wall Street’s famous one-liners: sell in May and go away. What researchers and enlightened investors are discovering is that this is poor advice. More specifically, long-term investors are advised not to avail this advice. Between May and October, the stock index is presumed to perform worse than in the November-April period. However, the only thing consistent about the market is that it’s inconsistent. Rather than follow the “sell in May and go away” instruction, consider the following investment tips instead.
Stay In Your Lane
Don’t concern yourself with industries you’re unfamiliar with. The stock market is no place to explore uncharted territory. If you work in healthcare, the pharmaceutical arena is up your alley. Moreover, if you’re tech-savvy, HPQ stock is more your speed. In essence, your line of work should dictate your investments. If you insist on pursuing daring new ventures, you better be sure that your understandings are up to snuff.
Choose Your Sources Wisely
The growing prevalence of fake news has been the kiss of death for some investors. It’s for this reason why it’s paramount to find a reputable outlet for your investment affairs. What’s more, be wary of sources that urge viewers to take immediate action. This false sense of urgency is a dubious tactic intended to swindle naive investors. In an effort to make it out unscathed, secure a credible source.
Less Is More
When it comes to investment solutions, a simple approach breeds the most profitable results. Investing aficionados love to propagate intricate methods, but this is nothing more than hot air. Successful investors maintain that the market punishes those who employ complex strategies. With that said, it’s prudent to keep it simple and stick to the basics.
Any gambler worth their salt knows how wise it is to leave while you’re on top. Investors should adopt this same profit-building mentality. One surefire way to do so is to remain grounded. Don’t lead with emotions or entertain fearmongering. Most importantly, it’s vital that you divorce yourself from pride. The more fragile your ego, the more likely you are to lose money.
Buy When Things Go Awry
Though this concept has long baffled the savvy investor, there’s a method to this madness. When disaster strikes, panic sets in. As a result, many lose their grip and get out of dodge to avoid future fiascos. In the investment realm, this can be a godsend. In industry terms, great reward follows “taking big stakes in beaten-down stocks.”