Mack Prioleau – What You Need to Know Before Buying Stocks

This has been a very volatile year at  the stock exchange and as a result we have seen some investors crush it, whilst others have been struggling greatly. If there is one thing that the markets do not like it is uncertainty, and this has been one of the most uncertain years on record. Not only the pandemic but then the riots which swept the US and of course the upcoming election, it is fair to say that the stock exchange wasn’t sure whether it was coming or going. It is important in times like these to learn from those who have done well, investors like Mack Prioleau for example, who have been savvy with their strategy and who have used experience to manage the stormy seas.

This year may have inspired many of you to look to buy stocks once the pandemic is over, and here is what you will first need to know.

What Kind of Investor

Every investor in stocks is looking for something different to the next, and you should decide which kind you are going to be. Some will look to day trade, buying and selling at pace throughout the day as the markets move, others look for long term investment in the likes of blue chip stocks and some mid-level risk investments and others may look at short-term strategies. Understanding what kind of returns you are looking for and what level of risk you are prepared to take is the first step, before you part with any money.

Current Climate

It has never been more important than now to understand what the current climate is within the industry which you are looking to invest in. For example you may believe that the travel and tourism sector is the right place to invest, big corporations who’s stick prices have plummeted following the lockdown. Whilst there is certainly scope for businesses like these to boom again, you need to have a good understanding of what the strengths of those companies are. We are living in a time where businesses are being forced to close their doors, and many cannot sustain operating at a loss for extended periods of time. Research is essential prior to investing.

Get a Great Broker

If you don’t plan on investing in a fund which will manage your investments for you, then you will need to get a broker to do your bidding. What you should be looking for in a broker is a great reputation and low transaction fees. A stock broker will be the one who actions your buying and selling of securities and they will also be on hand to offer some level of advice around your investments too.

The key to any kind of investment is to ensure that you have a full understanding of how it works, that you know where your money is going and that you have a clear picture of how you want it to come back.

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