7 Resolutions for Investing Success in 2019

By on January 5, 2019

The 2018 stock market closed with record breaking volatility, and this volatility is expected to continue. Thus, the new year opens with uncertainty and a unclear outlook for the stock market and other investing ventures in 2019.

Whether stock investing is your career or you’re just trying to build up your retirement fund, as you set your new years resolutions for the year, don’t forget to set some goals for improving your investment situation and gain the knowledge to make better choices.

Here are 7 New Year’s Resolutions which are sure to help any investor strategize and succeed in 2019:

#1 — Reset Your Investing Goals for 2019

Before you buy new stock, rebuild or rebalance your portfolio, take some time to assess your financial needs and set new goals for the year. It is important for your investment strategy to reflect your specific financial needs and goals.

The first step to resetting your investing goals for the year is to sketch out your needs and desires. If you are a first-time investor, determine how much money you can comfortably dedicate to starting your portfolio. For those already actively trading, reflect on last year to decide if your positions are leading you towards your goals, or set some new goals, such as earning enough for a vacation or a new car.

Have a new family and feel the need to support them without risking it all? Are you ready to be an aggressive stock trader? Need to offset some gains you pushed forward into this tax-year? Your personal financial situation will dictate the function of your investment portfolio and the type of investor you need to be to succeed.

Whether you turn towards investing into the uncertain stock market, jump into speculative and emerging markets or take a risk on day trading picks, keep in mind your investment goals when you set out a plan for your portfolio.

#2 — Take Advantage of Market Highs during theJanuary Effect

As we discussed last month, the January Effect is a common first quarter stock market trend in which investors push up stock prices as they return to the equity markets to reset their fund positions. Investors often are encouraged by the boost in consumer activity around the holiday retail season, however, this year, the strength of the bull market could be all the encouragement investors need to buy, buy, buy!

Use this time to make trades that will lower your capital gains liability come April by offsetting gains and losses. Reposition your portfolio for gains in the next profit wave. Shop around for great stock prices to score some ‘sweet’ ROI and begin the next year of investment with a solid foundation.

#3 — Rebalance and Diversify Your Portfolio

Rebalancing your portfolio to hold positions in a diverse group of industries and ventures will help you succeed under a variety of market situations. Should some positions perform better than others, huge losses and risks are often balanced out by strong positions elsewhere. It is the investors version of the motto to never put all your eggs in one basket.

Maintaining a well-balanced and diversified portfolio is the key to earning well-rounded investment profits. Avoid holding all of your positions in your employer’s stock, one industry, etc.. And if you have had successful stock in one industry, it may be time to reap profits back to original asset allocation plans, then reinvest in other sectors.

So when you make new stock selections in 2019, try to think of the positions you have already taken and pick new ones which complement those you already hold. Not only should your stocks work together, but they can also balance risk so that you may weather market fluctuations, natural disasters or other external factors which might severely affect one group of stocks over others.

#4 — Monitor How You React During Market Fluctuations

Individual stocks and the markets themselves are to be expected to go up and down. Considering all the factors which cause the markets to fluctuate – from financial reports to political events – it is good to know what is motivating you to follow trends or avoid the pack.

At any given point in the day’s trading, a stock can be down, then immediately surge back up and beyond. Any hasty or emotion-based decisions based on passing uncertainties can wreak havoc on an investor’s portfolio.

Try not to overreact on down days or buy into momentary fads. There is a time and place to be concerned, but if you have done your homework and seen a lasting trend, you will know when to worry.

If you do have a hard time avoiding emotion-filled trading frenzies, try taking notes about how you feel each time you buy, sell or trade a position. Take note of any patterns and speak with a broker who can help take some of the analysis and decision-making pressures off your hands.

#5 — Take a Back to Basics Approach to Investing

2019 may be the year to get back to basics when making investment choices. The days of part-time investing for fun or mob-like panics are behind us (for now), this is the year to focus on fundamental strategies, doing your homework and building a solid financial safety net through smart investments.

Choose to invest in well-established companies with strong histories or consistent returns and yet still has room to grow. Do your homework: research the trading and financial histories of the businesses or industries which interest you; speak with your trusted broker for their opinion. Focus on the details and take your time.

Investors looking to hone their investing skills are not driven by emotion, but tried and true financial analysis. And these investors are looking for a long-term resolution for success well beyond 2019.

#6 — Keep Abreast of Financial News, Analysis and Advice for Investing in 2019

Continue investing in your personal financial competency, hone your investment skills and learn up-to-date strategies by keeping up with market news, discussions, advice and analysis. Even for the passive investor, it is important to monitor the markets and company news. The better informed you are about market conditions and your stocks, the better decisions you and your broker can make to maintain your portfolio.

Thanks to modern technology, it’s hard to fail at this resolution. Commit to staying informed about the world of finance online, through social media, newspapers or whatever medium keeps you plugged-in.

#7 — Take Advantage of Your Support System: Speak with a Trusted Broker or Financial Advisor

Most of us don’t have time to become financial experts or full-time stock traders. Instead, we have a support team of experienced and trusted brokers, agents, tax accountants and advisors which can help us determine which positions to hold or sell and when to make smart moves.

The new year is as good a time as any to meet with your investment broker, fund managers or other financial advisors to create new goals for 2019, review your current assets and lay out steps to build a healthy investment portfolio.

Stick To These Easy Resolutions to Take Investing in Your Financial Future Seriously in 2019

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