Investing in the stock market is a challenge for men and women. Stock market companies drive the industry based on how well they perform. You can lose one day and gain the next day.
Risky is the word. However, with the right information, the market can be very rewarding. There is an investor’s motto that says you should only invest what you can afford to lose.
Women investing in the stock market is a change that is occurring rapidly worldwide. The reason women were not invited to the stock market table is that they were once considered a segment of the population that lacked confidence.
Women were also thought of as being too conservative in their spending habits for the family or in business. Women were apt to save more than spend. They were never given permission to take care of themselves and then try to build wealth and financial freedom.
Today, this has changed drastically. Financial institutions have taken notice that women investing in stocks are better at it than men, meaning that they are outperforming. Part of their success is due to their rise in breaking the glass ceiling in business.
To keep the momentum going, let’s look at five things women in business need to know before investing in the stock market:
- As a businesswoman who is diving into the stock market as a neophyte, it is best to go with the “buy-and-hold” method. A good indicator in the stock market trade is to wait for 52 weeks to determine a stock’s 52 week high and low patterns.
Within a 52 week market period, you will see whether you should invest in a stock. Many individuals who buy stocks begin to panic when their stock drops too much. Just wait. This is the worst time to sell because, as a businesswoman, you will be able to recognize the market’s strategy in creating predictable trends that will increase your financial investment exponentially.
- It is a wise decision to ask for advice from a financial advisor. It is an advisor’s job to help you reach your long-term goals. One of the best methods that an advisor will suggest is to make small monthly picks that start as low as $100.
As a businesswoman whose background consists of budgeting, you can put money into the market each month. This will help you to make investing an automatic process and allows you to average out your investment money into the market, especially when the markets experience highs and lows.
- Does your company offer employer-inspired retirement programs? If your business offers a 401(k) savings and investment plan, you may begin your stock market investments through this venue. Many investment plans are tax-deferred with matching options. You simply buy a fixed dollar amount stock, perhaps every pay period, and you can watch the success of your stocks through investment newsletters.
- When investing, it is important to spread the wealth. Whether you use a financial advisor or use your company’s investment program, every investor should pick their stocks across different industries. In other words, diversify your stock portfolio. Women who have become successful in the market suggest that you invest in bonds and fixed-indexed annuities to start.
- As a savvy businesswoman, some additional tips and suggestions can be provided, but this is financially-sound advice that will help you remain on the safe side of investing.
Consider establishing an emergency savings fund through the stock market. By investing in a high-yield savings account, cash can be available when life throws you a financial curveball.
You won’t get rich by setting up this type of savings portfolio because of its low-interest record (up to 2% APY), but it does add up giving you an extra income fund that will give you the security you will need at a critical time.
Ladies, don’t worry about making a stock market investment faux pas because every investor does at one time or another. Simply buy and sell when you can afford to. Take your time, listen to advisors, read your market reports, and stay patient.
Being a woman in finance is not always an easy road. But today it is common to see more women in business becoming involved in the stock market. With a careful financial plan, you can do it too.