Before you jump into the world of the stock market, there are a few rules you’ll have to learn.
There’s a reason that people speak regularly about “playing” the stock market.
But if the stock market is a game, then it’s one with clear rules and a series of strategies that have been proven to give investors an edge.
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If you can learn how to “read” the stock market as it fluctuates over time, then you’ll have far more success than those who just blindly invest based on rumor or advice they get from others (Edwards, 2016).
If you want to play the stock market with efficiency and success, there are 8 simple rules of basic money management to follow.
Borrow wisely, if at all.
Think of investments as a savings, not as extra money.
Don’t think about savings in terms of dollar amounts.
Develop good financial habits.
End the paycheck-to-paycheck lifestyle.
Keep your investing simple.
Make periodic investments, following a regular investment schedule for optimum results.
Don’t blindly follow investing advice.
Don’t make investments your only savings pool.
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