How to Invest in Stocks Long-term

Commodities. A great way to keep your wealth safe and to consistently grow your investments is to invest in commodities. A good example of a commodity is Gold. Gold is your best bet long-term due to its consistent growth over time and having never been worth zero. There will likely continue to be a shrinking supply of gold, which means the prices will continue to rise over the long-term.

Diversification. An example of diversifying is when you would buy the dollar and gold at the same time. This way, when one goes down, the other goes up. You are protecting yourself to an extent for the downside of either position. It’s important to know what stocks or commodities will influence the other and how to minimize your losses.

Mutual funds. A mutual fund is a combination of different stocks that have traditionally done well. Usually these stocks are composed of large companies and usually make consistent long-term gains. It’s better to pay the small fee and let stock brokers invest in mutual funds.

Buy on “Dips”. When a stock goes lower, it’s considered to be in a “dip.” When you see a large company or a stock that traditionally does well or is a household name, you should wait for the stock to go lower before you buy. This way you are increasing your chances of making money in the short and long-term.

Pay attention to the market. You never want to start investing in short or long-term stocks in a down market. You always want to invest in the stock market when it’s a “bull” market. Which means the trend is moving up. Making long-term investments in a down market is frowned upon and not advised. It’s better to wait for the market to start trending up before you invest any serious money.

Analyze your stocks. Even if you are investing in a mutual fund or letting a stock broker invest for you, its important to pay attention to a few things. Pay close attention to quarterly earnings reports and leadership. You should be aware of a company that loses it’s CEO and you should always keep a close eye on earnings reports since they both will have a big impact on the future price of your stock.