Top Tips for successful investors

The stock market isn’t just for the rich. Anyone is able to buy stocks, it just needs a bit of research. That is why our financial expert team sat down and created a guide providing the top tips for beginners.

1.Buy Stocks Online

In general, online stockbrokers are the cheapest and most transparent choice for you to start your investing journey as you can see how much everything is costing you which makes investing easier in the process. Just make sure you are using one that is registered. Otherwise, it is always good getting a personal recommendation from a friend.

2.Use London’s Stock Exchange website

Surprisingly, one of the best sources of information regarding the stock market you can find – and it’s completely free!

LSE’s website provides users with the opportunity to get a great amount of information on any listed company, screen stocks and also provides email alerts on companies you are interested in and much more. All you have to do is register

We personally believe that LSE’s site is a way better option than any traditional newspaper as it offers unlimited information about any stock, not just what’s in the news on the day.

3. Don’t over-research

Just because you can find any information you are looking for, doesn’t mean that you have to. 

You should avoid overdoing it by spending no more than 30 minutes a day reading the financial news. The less stocks you buy, the less you have to keep up with what’s new in the market.

In fact, many people tend to spend so long researching that when they finally decide to buy, the market has changed so significantly that they have to start again.

4. Establish a plan

Having decided that you would like to invest your money, the next thing you should do is establish a plan. While doing that, you should consider a few questions: How much am I able to invest? How much can I afford to lose? What is my ultimate goal? How long should I invest to reach that goal? 

5. Buy in a boring fashion

You should look for “boring companies that make money in a boring way”. This approach will save you from the hustle and bustle of trying to predict which way the market will move which sounds more like gambling than investing.

A “boring company”, if you ask, is one whose profits and dividends are steadily increasing over the years.

6. Start with bigger companies

Many pioneer investors recommend “do not invest in companies you do not understand”. It is therefore suggested that you start your investing journey with bigger corporations whose business model you fully grasp, rather than the next startup success. Larger businesses are less likely to fail, so it is less likely that you will end up losing your entire investment.

7. Invest for the long-term

But most of all, it is always suggested to focus on long-term investments. In fact, many investors make the mistake to sell their stocks immediately when prices go up, ignoring the fact that the company might continue thriving in the future.

8. Don’t forget about dividends

Anyone can grasp the idea of making money from the  changing stock prices, but owning stocks gives you way more benefits.

It is essential that you factor in dividends to your decisions, as over a long period they come to be as important as the stock price movement. That’s the case due to the fact that dividends can help offset a fall in the stock price, provide you with an income source when it remains stable or offer the “icing on the cake” when the price is increasing.

9. Take responsibility and don’t panic!

Sharing tips can be useful but at the end of the day you are the one to make the decision to take the risk and invest. 

Technology and the modern stock market move quickly as prices tend to fluctuate within a day. You shouldn’t get discouraged, nor should you fear the predatory hedge funds, computerised fast algorithms or the other financial bogeymen you read about in the press.

You must make your own decisions, learn from your mistakes and let these pave the way to success.