How Do I Plan My Investing Strategy For 2023?

When it comes to making an investment strategy, the first question you must ask yourself is: What do you want to accomplish through your investing? The simplest answer is, undoubtedly, ‘make money,’ but your why will drive your specific investing strategies.

Do you want a comfortable retirement? Are you looking for enough money to buy a new home or car? Do you aspire to make a regular income, so you can quit your current job? Perhaps you want to make money quickly or over a span of decades.

Once you’re aware of your own needs, you can better determine the best approach to your investing for the coming year. Here are a few other important tidbits you’ll need to know when planning your strategy.

Diversify, Diversify, Diversify

The first and most important rule to follow when investing is to diversify. The now clichéd adage, ‘don’t put all your eggs in one basket,’ still remains accurate.

The market can be incredibly volatile, and even if you plan on putting your money in relatively recession-proof stocks, no one has a crystal ball to predict the future. A stock that you may believe has nowhere to go but up could crash for reasons no one could possibly foresee.

Todd Walsh, CEO of Alpha Cubed investments, says, “We want a good strong core of dividends in the portfolio to do the heavy lifting as we continue to navigate the economic headwinds we are facing.”

In other words, if you want your investments to provide more money than you put in, create a solid base of reliable, diversified stocks, and then experiment with some riskier options. As you diversify your investments, try not to make your investment decisions based on your emotions about the current market conditions. Look at all your options before jumping in — or out.

Understand Reliable Stocks

By understanding that reliability doesn’t mean perfection, you won’t have unrealistic expectations for every stock you purchase. Whether we face a recession in 2023 or not, there are industries that will provide…

Read complete post here:
Source link