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Stock Investing 101: How Much Money Should I Invest?

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If you’re new to investing in the stock market, it’s best to have a set strategy of what you want to invest in, how much money and how long you want to keep that investment. It’s okay to open an IRA or Roth IRA account, but it may not be smart to place all of your money away into the stock market.

You don’t want to end up pennieless from poor financial management.

It’s easy to get excited and keep up with the crowd to buy “trending” penny stocks. Nor is there anything wrong with stashing your money away in the market, but you don’t want to end up penniless from poor personal financial management. It’s best to see a professional accountant and to have a $1,000 emergency fund when big expenses come up (car expenses, job loss, etc.) for your personal account. Don’t let your finances control you, take control of your finances.

Educate yourself to get ahead of your personal finances.

Many investors learn the best advice from reading self-help personal finance books and associating with like-minded people. Educate yourself to get ahead of your personal finances, you want to invest in the market to make money, not lose it. There is no set amount of money you should place into the stock market- if so put in as much as you can. The situation is to know why you’re placing your money in the stock market, and when you invest in a security, take ownership and understand why you chose that investment.

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