We all know that investing is a lucrative avenue when done correctly.
However, investment requires a great deal of understanding. It’s crucial that you know what’s going on in the markets, and in your investments specifically.
With that in mind, we’ve drawn up a list of things to check every morning.
A good investor wakes up, and sits down to the following essentials. Following this advice will give you a headstart on the market, and the right information to make decisions.
The single most important thing when it comes to investments is knowledge. By arming yourself with knowledge every morning, you set yourself up for lucrative financial future.
The Dow Jones
The Dow Jones Industrial Average is the oldest stock market measure in the US. It collects the average share price of 30 major stock market companies. By combining their average share price, it gives you a strong indication of where the market is heading.
If those 30 companies collectively perform badly, the Dow Jones goes down. It’s one of the most reliable barometers of stock market health. Other indices to watch out for in the US include the Nasdaq and the S&P 500.
Other global indices
As well as the American market, you should take a look at what’s happening in the UK and further afield. The most important global indices include the UK’s FTSE 100 (the top 100 companies in the UK).
The Shanghai Composite is another crucial indicator of global market growth. For instance, if the Shanghai Composite is down when you wake up, you can generally assume the US market will follow suit. By analysing all the global averages, you can get a sense of where the market is heading.
The price of the dollar
You’ll notice that news readers tend to give you the price of the dollar against the euro and the British pound. This is all part of the Forex market, and a valuable news source.
You’re looking for the dollar sweet spot when they’re reporting on currency. If the dollar is too high, then it can spell bad news for the stock market. It means that global companies might turn to Britain or Europe for trade if the dollar is too expensive.
If the dollar is too weak, it also suggests market slowdown, because there is too much currency in rotation. You’re looking for a sweet spot where the dollar is healthy and growing just ahead of the others.
The financial news
New, rumours, and stories have an enormous effect on the stock market and share prices. News in the Middle East will have a big impact on oil prices, for example. Meanwhile, the American election cycle is already weighing on the biggest US indices, as uncertainty sets in.
A savvy trader can take a look at the daily headlines, and assess how it will impact their shares. By staying ahead of the game, you can beat the trends, and make sensible decisions.
Remember, investments require a certain level of control and understanding. By checking these essential things every single day, you’ll stay one step ahead of the markets.
