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3 Tips For Better Investing

<p style&equals;"text-align&colon; justify&semi;">The stock market can be a fickle animal&period; Long and short term investors should follow a few tips to ride out the lows and highs of a sometimes volatile market&period;<&sol;p>&NewLine;<h2 style&equals;"text-align&colon; justify&semi;">Be Realistic<&sol;h2>&NewLine;<p style&equals;"text-align&colon; justify&semi;">Beating the market puts you ahead of the pack but if you’re expecting to double market returns temper your excitement&period; Unless you’re investing significant amounts of money in a respected fund run by a superstar money manager getting epic returns is not likely&period;<&sol;p>&NewLine;<p style&equals;"text-align&colon; justify&semi;">Investing in an unknown company which becomes a media darling can help you grow your investment quickly but these companies are few and far between&period; If you’re putting money into a mutual fund or ETF expect slow and steady returns over time&period;  Make beating the market by a percent or so your ultimate goal&period;<&sol;p>&NewLine;<p style&equals;"text-align&colon; justify&semi;">Think long haul&period; Patiently check your portfolio’s performance quarter after quarter&period; Although you do want to move out of a less than stellar sector if it seems to be failing give your investment a chance to right itself&period; Unless you’re investing with a time frame within weeks or months sit tight to ride out any short term corrections&period;<&sol;p>&NewLine;<h2 style&equals;"text-align&colon; justify&semi;">Know Your FA<&sol;h2>&NewLine;<p style&equals;"text-align&colon; justify&semi;">Whether you’re investing heavily in the market or dipping your toes into stock&comma; bond and mutual fund trading know your financial advisor&period; Set up a sit down interview to connect with your advisor&period; Ask them as many pertinent questions as possible to get a feel for their intent&period;<&sol;p>&NewLine;<p style&equals;"text-align&colon; justify&semi;">Are they hungry to hit things out of the park&quest; Taking wild or blind risks is the trait of a gambler as opposed to a sound&comma; wise&comma; experienced investor&period; Smart financial advisors are confident enough in their abilities not to brag about their accomplishments&period; Their past speaks for itself&period;<&sol;p>&NewLine;<p style&equals;"text-align&colon; justify&semi;">Is your prospective FA experienced&quest; For how many years have they been managing accounts&quest; Have they consistently beaten the market averages&quest; If each question is answered to your liking feel free to continue the relationship&period;<&sol;p>&NewLine;<h2 style&equals;"text-align&colon; justify&semi;">Practice Emotional Discipline<&sol;h2>&NewLine;<p style&equals;"text-align&colon; justify&semi;">All-time investment great Jesse Livermore stressed that controlling your emotions is a chief aspect of successful trading&period; A combination of greed&comma; fear and hope rule the market&period; Investors want more&comma; fear losing it all&comma; or hope that their plummeting investment will turn around&period;<&sol;p>&NewLine;<p style&equals;"text-align&colon; justify&semi;">These powerful emotions will arise in your being but you can’t be a successful short term investor unless you let them go without acting on them&period; Practice emotional discipline&period; Catch yourself when feeling greedy for a bigger gain when you should take your profit and run&period; Watch when you fear losing it all when you should sit tight for a small market correction&period;<&sol;p>&NewLine;<p style&equals;"text-align&colon; justify&semi;">Most of all&comma; watch when you hope for a comeback after one of your stocks dives 30&percnt;&comma; 40&percnt; or 70&percnt; in a matter of hours or days&period; Put strict trading rules into place&period; Decide to take some profits when your stock is up 20&percnt; and cut losses when your stock is down 8&percnt;&period;<&sol;p>&NewLine;<p style&equals;"text-align&colon; justify&semi;">As for longer term investment strategies you’re far less likely to see such wild swings but if you do note big movements consult with your financial advisor before making a rash decision&period;<&sol;p>&NewLine;<p style&equals;"text-align&colon; justify&semi;">Smart investors should check out TrendsInvesting&period;com for keen trading insight&period;<&sol;p>&NewLine;

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