Today we are in a more volatile market with surprising news of Donald Trump winning the president election. I understand how most of you are sad, angry or confused about the election. Upsets happen but it is time to start thinking about how you can take advantage of a changing market. Market crashes can be your enemy or your best friend. Let’s start looking at this as an opportunity to take advantage of a huge market change. I constantly preach the formula E + R = O
Even though the market is showing signs of stabilization as investors rally it’s a great chance to enter the market on smart investments. This can be an opportune moment or a crash in the making. Before you go all Wall Street here is four things to consider before investing.
- Plan Your Money
Playing in the market requires money to ride. Now is the time to look over your budget for any areas that you can cut back for quick cash to invest with. Only use money that you don’t mind having tied up for a few days and money that you will not miss. If you are still paying down debt stay on your debt plan. In addition, if you’re currently not done saving for an emergency fund I would recommend to hold off on investing. The stock market doesn’t seem to be going anywhere anytime soon.
You can also find money if you already have investments that you think will be falling in the near future. For example: if your investment relies on Obamacare it may be time to abandon ship.
2. Self Searching
Be honest with yourself about why you want to start investing. Is it for short or long term goals? Do you plan on becoming a day trader or investor? What goals do you want to accomplish? How risky do you want to invest? Do you want to use an broker or mobile apps? Answer these questions to not only save yourself time but to help mold your goals. Whether your goal is to get a few bucks or start investing for retirement, you will need to know before making a strategy. For mobile apps I recommend Robinhood if you plan on picking your stock or Acorns if you want someone to pick investments for you.
3. Learn the Basics
This is an easy step so don’t be scared about learning a new subject. You will want to start to learn just the basics of investing when starting out. Please don’t try to study to become an expert, look for general knowledge. The goal here is to learn enough to understand the basic concepts/terms so the language will not panic you. Click here for 11 investing terms to get you started.
4. Investing Strategy
Picking an investment strategy will decide what types of investment vehicles to choose from. Your choices range from stocks, bonds, and mutual funds. Each choice has its certain risk with investing and will depend on your comfort zone. If you plan on investing long term then you can pick an investment vehicle more risky because you will have time to recover. On the other hand if you are aiming for short-term stocks will give you the quickest turn around and profit. Be careful to calculate trading fees for short-term investments.
My favorite part of the process. Take action! Do not; I repeat do not sit on an idea for too long. After doing your due diligence it is time to get moving and put the plan to work. Time is a huge factor that millennials don’t take advantage of enough!
Numerous stocks will be going up and down as the market adjusts to Donald Trump being president. Private prisons stocks are going up while stocks associated with health care are plummeting. Here is my warning: Watch Donald Trump carefully, he was extremely underestimated throughout the whole election. He is unpredictable and it’s hard to figure what he really does stand for. Stay current with the news to learn more about his policies and cabinet as it forms.
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