15 Ways to Smash the Stock Market Before Summer Is Over

Investing is a learning process, and even the most experienced of investors make mistakes. The good news is that some of these mistakes are easily avoidable.

If you’re ready to smash the stock market in 2021 and beyond, you’ve come to the right place. Let’s take a look at 15 easy ways you can do just that.

5 Winning Stocks Under $49
We hear it over and over from investors, “I wish I had bought Amazon or Netflix when they were first recommended by the Motley Fool. I’d be sitting on a gold mine!” And it’s true. And while Amazon and Netflix have had a good run, we think these 5 other stocks are screaming buys. And you can buy them now for less than $49 a share! Simply click here to learn how to get your copy of “5 Growth Stocks Under $49” for FREE for a limited time only.

Trying to time the market is often a lose-lose game. While you may generate a few wins by trying to predict the market and buying stocks based on those predictions, it’s more probable that your losses will outpace or even erase your wins. Investors don’t need to approach trading stocks like a game of chance where only a few lucky winners get to take home the prize.

The stock market is full of opportunities for investors of all ages, risk tolerances, and trading styles. The best way to generate and keep up optimal portfolio returns is to invest in quality companies for the long term, which means holding any stock you buy for three to five years at minimum.

ALSO READ: Top Summer Stocks in 2021

Some investors like to keep their focus on low-volatility stocks that generate conservative but consistent growth, while others prefer to take on a higher level of risk when trading stocks. Many investors favor the approach of income investing, which means investing primarily in dividend stocks that can yield portfolio returns both through share price increases and payout hikes. A number of investors like to focus on newer companies with considerable long-term growth potential, while others prefer established businesses that can generate more predictable returns.

There are many different ways you can tailor your long-term investment strategy to your personal financial needs and preferences. Often, an approach that is weighted between these various investing strategies is an effective way to build a well-diversified portfolio that is primed to deliver terrific returns in multiple market circumstances.

When you’re considering and researching a stock buy, of course you’re going to look at it in the context of its long-term growth potential for your portfolio. This will typically involve an analysis of the company’s financial history and key investing metrics. And don’t get me wrong -- these are all vital factors to consider before you invest your hard-earned money into a company that you plan on holding for years.

However, it’s also important to look beyond these metrics when considering whether a stock is the right fit for your investing goals. Think of a potential stock not just as a means of realizing portfolio returns but also as a company in which you will become a part owner should you buy in.

Consider questions like: How strong is the company’s position within the industry or industries it operates in? What factors are likely to drive the company’s growth in the years ahead and translate to increased shareholder value? How fast is the company’s industry growing, and is there sufficient growth runway left in the coming years? How will investing in this company drive you closer to achieving your long-term portfolio goals?

When looking at an investment from the standpoint of a prospective shareholder who will reap the outcomes of both the company’s successes and failures over the long haul, this can help you narrow down your buy list to the best possible picks for your personal portfolio.

Let’s be clear -- it’s 100% possible for long-term investors to build a winning portfolio that delivers market-beating returns, and this is a great goal to have in mind when you buy stocks.

That being said, actively trying to beat the market -- rather than simply investing in robust companies primed to deliver generous returns over the years -- is an easy way to potentially lose money and weaken your portfolio.

Many of the most successful investors are those who invest often in excellent companies regardless of market ups or downs. By maintaining a consistent pattern of investing in an array of market scenarios, rather than investing based on hype or waiting for the “perfect moment” to invest, you’re far more likely to realize and sustain above-average portfolio returns over a period of years.

ALSO READ: 5 No-Brainer Stocks to Invest $200 in Right Now

Competitive advantage is an important nonnumerical factor to consider when examining a stock for your portfolio. There are many types of competitive advantages a company can have. For example, if the quality and/or specificity of a company’s products or services generate unique consumer demand and therefore set it apart from other industry challengers, it is likely to have a strong competitive advantage.

Likewise, a company that controls a substantial share of a fast-growing market or has a robust brand authority could be said to have an attractive competitive advantage, which could also bode very well for its prospects as a long-term investment.

5 Winning Stocks Under $49
We hear it over and over from investors, “I wish I had bought Amazon or Netflix when they were first recommended by the Motley Fool. I’d be sitting on a gold mine!” And it’s true. And while Amazon and Netflix have had a good run, we think these 5 other stocks are screaming buys. And you can buy them now for less than $49 a share! Simply click here to learn how to get your copy of “5 Growth Stocks Under $49” for FREE for a limited time only.

One of the best ways to build your portfolio to withstand highs and lows in the market is to fill it with a healthy blend of investments. Rather than investing in just a couple of stocks or industries, portfolio diversification involves distributing your money across a range of asset types and sectors to ensure you’re not too dependent on a singular investment or leaving your portfolio open to excessive risk should a particular stock or sector hit some speed bumps.

Whether you’re a long-term investor that likes to take on a healthy level of risk or you tend to be largely risk averse when it comes to stock trading, there’s no single right path to follow to achieve generous portfolio returns. More often than not, though, filling your basket with various types of investments that provide different avenues for sustaining long-term gains is the most potent approach to long-term investing.

To offer some examples: Small-cap stocks, mid-cap stocks, large-cap stocks, blue chip stocks, exchange-traded funds (ETFs), index funds, mutual funds, and bonds can all play a role in building sustainable wealth through investing.

ALSO READ: Exactly How I'd Invest $5,000 if I Had to Start From Scratch Today

If another market crash does happen soon, don’t let it upend your long-term investing strategy. Make sure that you’re using the time you have right now to add to your nest egg. Whenever the market does fall again, continue to use your money to invest in stocks that can sustain long-term growth.

Another market crash could be around the corner. Remember, you don’t have to stop investing if the market crashes. In fact, you can use a downturn to your advantage to get the most bang for your buck when many top stocks are trading down.

The power of hype is a stark reality in today’s investing world. We live in an era when retail traders who connect on online forums like Reddit band en masse to buy once-defunct stocks, which in many cases results in them temporarily driving prices up to untenable valuations before cashing out and causing prices to plummet again. This lends itself to some interesting market movements and undoubtedly has contributed to some of the broader market volatility that has become an increasing trend in recent months.

While there are certainly some good buys that have made it onto the radar of the Reddit and meme stock crowd, many of these hype-based trades aren’t much more than that. If you find yourself tempted by a hyped-up investment, consider whether the company is poised to deliver durable portfolio returns or if it’s instead fallen victim to the temporary whimsy of the day-trading crowd.

No investment is entirely free of risk, and there is no absolutely sure thing when it comes to investing in stocks. That said, if your goal is long-term wealth creation, you’re far more likely to achieve and sustain this objective through a consistent, buy-and-hold investing strategy rather than trying to time the market or cash in on the latest hype.

5 Winning Stocks Under $49
We hear it over and over from investors, “I wish I had bought Amazon or Netflix when they were first recommended by the Motley Fool. I’d be sitting on a gold mine!” And it’s true. And while Amazon and Netflix have had a good run, we think these 5 other stocks are screaming buys. And you can buy them now for less than $49 a share! Simply click here to learn how to get your copy of “5 Growth Stocks Under $49” for FREE for a limited time only.

It’s a good idea to check your portfolio every few months to see how your investments are doing, ensure that your holdings are adequately diversified, and determine what areas of your portfolio may need rebalancing. That said, logging into your portfolio every day or week isn’t necessarily going to be beneficial and could send your emotions high.

Remember, your portfolio is going to fluctuate with time, and its movements over a few days or weeks shouldn’t cause you to change your long-term investing strategy.

ALSO READ: 3 Top Reopening Stocks to Buy Right Now

Growth and value stocks can bring a host of stimuli for wealth creation into your portfolio. Companies that qualify as growth stocks tend to boost their earnings much quicker compared with their competitors or other stocks trading on the market, while value stocks tend to be particularly attractive to investors seeking companies trading at a bargain price in terms of their financial situation and growth ability.

Growth stocks tend to be more volatile than value stocks but can also deliver optimal returns faster. On the other hand, value stocks tend to have more stable attributes, which lend to more gradual, consistent portfolio growth. It’s also worth noting that a stock can fall into the category of both a growth stock and a value stock, or bear features of both.

Growth stocks tend to be more volatile in tough economic conditions compared with value stocks, while outpacing the performance of value stocks in times of economic calm. However, there are exceptions in both scenarios. In short: Growth stocks and value stocks can both play an important role in building wealth for the long-term investor.

When the market has been as full of ups and downs as it’s been lately, you’re not alone if you sometimes feel that your emotions are getting in the way of sound investing choices. But emotional stock buying decisions won’t help you build a portfolio filled with high-performing long-term investments.

It’s better to take a step back for a few days and wait to press the buy button on any stocks you’re considering if emotions are running high than to make a rash decision you’ll regret later.

If your misgivings stem from fears about another imminent market downturn, the most important thing to remember is that you want to minimize your losses as much as possible during a crash or correction. The best way to do this is to avoid joining the panic sell-off and to keep investing in quality stocks consistently. And if the next crash simply causes emotions to run too high, it’s perfectly fine to stay put and leave your holdings alone until the market stabilizes.

In the words of one of my favorite investors of all time, Warren Buffett, “Buy a stock the way you would buy a house. Understand and like it such that you'd be content to own it in the absence of any market."

I would also note that in these turbulent market times, you should take these considerations one step further when considering a stock for your portfolio. If the market was to go into a tailspin tomorrow, would your confidence in the company’s long-term investment prospects and underlying business be such that you’d still want to keep that stock in your portfolio for the long haul?

Asking yourself these types of questions before you invest in a new stock or stocks in addition to performing the traditional fundamental and technical analyses can help you determine whether your interest in a potential buy is based more on hype or a solid long-term investment strategy.

ALSO READ: 3 Unstoppable Stocks That Are Beating Warren Buffett So Far This Year

There’s no debating that it’s much more fun to be an investor when the market is booking a continual streak of gains and economic conditions are rosy. But even when the market is down, you can still locate excellent investment opportunities to grow your portfolio over the long term.

Rather than focusing on a stock’s financial returns or share price movements over one or two quarters, consider the bigger picture of years’ worth of gains and losses on these fronts.

When you invest in excellent companies with strong track records of growth, sturdy underlying businesses, attractive competitive advantages, and the means to deliver ongoing returns over an extended period of time, an interim crash or correction shouldn’t deter you from buying these types of stocks.

5 Winning Stocks Under $49
We hear it over and over from investors, “I wish I had bought Amazon or Netflix when they were first recommended by the Motley Fool. I’d be sitting on a gold mine!” And it’s true. And while Amazon and Netflix have had a good run, we think these 5 other stocks are screaming buys. And you can buy them now for less than $49 a share! Simply click here to learn how to get your copy of “5 Growth Stocks Under $49” for FREE for a limited time only.

The stock market has been on a wild ride in past months as investors have scurried to respond to tremendous spikes in inflation and fears that the highly contagious delta variant of the coronavirus could threaten the reopening of global economies.

Despite these factors, the market has still managed to deliver multiple days of record high closes, and no shortage of attractive investment opportunities await patient investors who can look beyond near-term market unrest and focus on the bigger picture.

While it’s possible that investors may be in for another market crash or correction in the near future, those who maintain a long-term investing mindset understand that these events are normal and unavoidable. Both bull and bear markets are ripe with hot investing opportunities for stock traders with a long-term buying perspective.

Plus, when you only pick top-notch stocks that you’re intent on holding for years as a means of generating consistent portfolio returns, a crash or correction is just one in a series of cyclical market events that will occur during your investing journey and shouldn’t change your overall investing outlook.

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