How much money have you invested in the stock market? Have you been successful and how do you determine your stock market investing success? Have you invested any money at all or is the Johannesburg Stock Exchange an intimidating financial beast that you'd rather avoid? This week on #BeFinanciallySmart, a weekly feature that educates listeners about money, FNB expert Ester Osche gives some tips on investing in the stock market.
Saving should be one of the first things on your budget. Even the smallest amount of money makes a difference— Ester Ochse, Product Specialist at FNB
According to FNB's Ester Osche, every investor must have an investment strategy and stick to the basic rules of investing for the long-term. Investing can be risky, but if you manage your risks and take carefully calculated moves, the rewards of investing in the stock market over the long-term can be substantial. There are three basic rules to investing in the stock market:
Only invest what you can afford to lose - The stock market is volatile. Share prices can move wildly and you can lose your investments.
Buy low - Sell High - You want to sell your shares at a profit. So, buying low and selling high is the key to successful investing.
Don't Panic - Invest for the long-term - Watching share prices rise and fall can cause severe stress. So focus on the long-term and don't make rushed decisions.
Always remember that share investing is a marathon. You need to be in it for the long run.— Ester Ochse, Product Specialist at FNB
Listen to the full audio below