Although the stock market is riddled with uncertainties, certain tried-and true principles can boost your chances for long-term success.

The first thing any investor must do is define their financial goals, such as saving for retirement, purchasing a home or funding your children’s education. This will help them determine how much money they should invest and which types of investments are best for their situation.

The importance of establishing an emergency fund or repaying high-interest loans prior to investing in the market is an excellent option. Start small and increase your investment as you become more experienced.

One of the biggest mistakes that beginners make is Related Site trying to time the market, Keady says. “Nobody is able to pinpoint the ideal time to invest,” she adds, noting that the best approach is to make an investment for the long run and stick with it even through the rough patches.

If you’re just beginning your journey it’s best to concentrate on stocks from firms that you are familiar with. As the famous Fidelity Magellan fund manager Peter Lynch famously observed that you stand a better chance of winning when you bet on companies that have a strong track record and solid growth prospects, rather than trying to predict the future.

Avoid online forums and ads that promote stocks that have a high chance of success. In many cases, they are part of a pump-and-dump scheme in which shady people purchase shares of a sluggishly traded company to drive up the price, and then sell their shares to make money.