A budget can be very helpful in achieving stability. There are several budget software programs which can be downloaded online for free. This is an easy way to keep track of your expenses. Budgets help pin point places where money can be saved. Make sure once you form a budget you stick too it.
But you are also able to take advantage of dollar cost averaging – which means that during those dips in the market mentioned above, the dollars that you are investing are actually able to buy more because prices are lower. Then when the market recovers, you’ve actually gained more shares than you could have if the market had never dipped.
You need to work on a trading or investment strategy that suits YOU. The investment strategy must take into consideration all the elements you identified about yourself in step one. The key to long term success is to find a stock strategy that suits your personality, your strengths and your weaknesses.
Waiting an extra day, week, or month to try and buy in at the “right price” just doesn’t work. No one can predict the future. If they could they most likely wouldn’t be sharing this knowledge with you for free. Successful investors use time, patience and a disciplined approach to increase the likelihood of maximizing their investment returns – not trying to time the market.
Remember solid investing strategies and number crunching is the key to successful real estate investing. If the numbers don’t add up or you can’t find a way to wind up in the black at the end of the month, don’t be ready to walk away.