DELICIOUS
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REDDITIt’s a new year and with it comes a closer look at your financial situation. That’s right–it’s time to take a look at your spending, saving, and investment plans for the next 12 months. Even if everything went perfectly over the course of 2015, surely there are a few changes that you’d like to make, right? Here are the top five tips that stock investors should take to heart if they want 2016 to be even better than 2015:
Spend Some Time on Education
It’s good to take some time to revisit the basics every once in a while, just to refresh your memory. It’s also a good idea to spend some time observing traders and what they’re doing to ensure their success. A great deal of pro-level traders offer educational materials through sites like Simpler Trading that you can peruse at your own pace. Getting back to basics is a great way to hone your strategy for the year ahead.
Tech is More Important than Ever
You might have been hesitant to invest in big companies like Apple or Microsoft, but trust us: you want at least a couple of tech stocks in your portfolio. Furthermore, Apple and Microsoft aren’t the only companies out there ready for your investment.
Experts listed Seagate and Western Digital as a couple of their favorite tech companies. Remember: tech applies to the small components as well as the big ones! You might also take a good look at investing in some Square shares–the company recently went public and is one of the fastest growing payment processors online.
Health Care
When most of us think of health care, we don’t think about investing. We think about all of the fighting being done in DC and the fifty times Republicans have tried to repeat Obamacare. Thanks to the dramatic increase in the need for health coverage, health care investments have soared. Experts think that this surge in profitability should continue, even if a newly minted 2017 Congress manages to make a dent in Obamacare’s policies.
Value Matters
Which products offer consumers the most value? Yes, many items are made to be disposable these days but people still look for quality when it comes time to make a purchase. They want items that are well made so that they will last a long time. Who makes these products? These are the companies that deserve your attention. When checking these companies out, however, make sure to pay attention to the details, like you will with Tech stocks. The brand name stamped on the product might be recognizable but that doesn’t mean that they actually manufacture the product they are selling. Sure you might want to invest in the brand–trustworthy brands are always a good investment–but consider in investing in the manufacturing companies behind the scenes too.
Risk is for Vegas, Not Your Retirement
Everybody wants to get in on the ground floor of the next big thing. How many of you are still kicking yourselves over not buying Twitter or Facebook right away? This need to jump on the next big thing is very real, but most peoples’ ability to predict what that will be is about as good as their prediction about which numbers will win big in the lottery. Don’t jump onto something just because the cool kids like it today. Take your time, do your research. Make sure the company has the ability to weather the storm if their initial IPO tanks. It’s fine to take a chance with a couple of bucks on a roulette wheel in Vegas. It is not okay to take a chance with hundreds or even thousands of dollars in your retirement account.
Nobody knows exactly what the market will do in 2016. But if you follow these basic tips, you should come out ahead. Good luck!
