Exercise patience and control in your investments. The stock market tends to have many investment opportunities that are favorable one day, and not so favorable the next. Keep up with long term investments rather than getting caught up in flash in the pan opportunities that may fizzle out in no time.

Avoid impulse buys in the stock market. You certainly might wake up some mornings to find that a stock has jumped 10%, 20%, or even 30%. Before you decide to make that purchase, do a little research. Make sure that this stock isn’t being affected by some hot trend, because that trend might diminish as quickly as it came about. If you wait to buy, at certain times, instead of always buying on impulse, you can prevent big losses that might take you out of the stock market for good.

When investing in the stock market, you should only trade with cash that you can afford to lose. You do not ever want to put in cash that you will need to pay off debt into the stock market because you could lose it all. No investment is 100% safe, and you should never attempt to speculate on what’s going to happen in the future with money that you will need.

Look out for a bull market. Bull and bear markets tend to be more cyclical, and eventually the bear market will turn into a bull market. Wise investors usually watch the market very carefully so that any initial signs of the market changing can be detected. This can help them act faster.

Before you decide to invest with a certain company, be sure to investigate the credibility of the company. Look into newspaper reports to be sure they have not and are not being investigated for any type of fraud. You can also look into their credit rating to make sure that they are currently up to date on their accounts. It is better to be safe than sorry.

When you are starting out in the stock market, it is best to invest in what you know. The more familiar you are with a particular business or market niche, the better you will be at knowing whether a certain investment is likely to pay off. As you learn more, you can expand your investments.

Before you invest in any stock, a minimum of three financial statements from the company in question must be analyzed closely. These are the income statements, the balance sheet and the cash flow statement. Reviewing the current copies of these three documents will give you a quick idea of where the company is today and headed in the near future.

Keep in mind that bear markets represent buying opportunities, both generally and specific. The entire stock market is usually depressed during this time, meaning blue chip stocks are more accessible than usual so you can snag them for long term holding. Also keep an eye out for short term holds that traditionally do well in down economies, like movie theaters, dollar stores and so called sin stocks like alcohol and tobacco.

Think small to grow big. If your aim is growing your money substantially over the years, aim for smaller and medium-sized companies that have serious growth potential. A retail chain with a superstore in every neighborhood, might be a safe place to park and keep your investment at its current value, but in order for it to have growth, the growth would have to outmatch a Fortune 500 company. A small firm can double in size and still have plenty of potential market.

Whatever your original investment portfolio size might be, and no matter how large your end goals are, you can do it. The insight you now have, after reading this article, hopefully, has given you the power to take your financial future into your own hands and mold it into everything that you have dreamed of. Now all you have to do is to just do it!

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Please note: The views and opinions expressed above are those of the contributor and do not necessarily reflect those of the publisher;   www.theissue.com.au