Investing is more accessible than ever – nowadays, anyone can invest their hard-earned cash. Nonetheless, it’s important to go into any investment with your eyes open, and it’s best not to think of it as a ‘get rich quick’ scheme. Although this may be possible, the best investment portfolios are diverse so as to minimise risk, and it’s vital to prepare for the challenges of trading before you begin.
With all that being said, here are key tips and tricks for navigating the global stock market with confidence.
Ensure you have a secure internet connection
This seems like an obvious one, but it’s vital that you have a high-speed, secure internet connection in order to ensure that you’re best able to engage in the market. Using a VPN is a great way of doing so. A VPN will ensure your anonymity, giving you more control over your online footprint – a must for anyone keen on engaging with the stock market.
VPNs are also a fantastic method of masking your computer’s physical location and making it appear as though you’re in another part of the world. This can be very useful for accessing geoblocked websites with content that is restricted in your country, which could give you an informational edge when playing the stock market. So if you’re looking for a way to circumvent geotracking or knowing a person’s location, a VPN could be the answer.
Create a watchlist
This is the equivalent of doing your homework on the global stock market. Before you choose to invest in any stocks, you need to be sure that you have comprehensive knowledge about exactly what your money is going towards.
Publicly traded companies have to submit paperwork that includes information about their revenue, expenses, and other information. You can gain access to this via their website, using it to inform your investment decision.
Preparation is critical – in fact, as many as 90% of traders lose money on investments because they don’t go in prepared. You can alleviate this by beginning and maintaining a watchlist, as well as getting up to speed with key stock market terminology.
Gauge your risk tolerance
Only you know how risk averse (or not) you are. Investments that are higher risk will give greater returns, but they’re more volatile, and what you get back from them is less predictable as a consequence.
Before you invest, you need to establish your own ability to handle risk. If you’re prone to anxiety, it’s a more secure strategy to go with investments that are lower risk.
Choose a good brokerage
Getting the right brokerage for your needs is critical, as it will determine and inform your investing and trading strategy. Be aware that brokerages located in different countries might have different rules and regulations – this is another reason why using a VPN can be a great asset when playing the global stock market.
Do your research before choosing the right brokerage for you. There are many online brokerages offering different services, all of which will charge variable fees. Doing your due diligence in your research will pay off exponentially for future investments.