One of the biggest obstacles to investing is lack of knowledge, however, with the latest creation of online investing (stay tuned for more on that – exciting announcement coming up), investing in stocks is now more open, and with a few basic do’s and dont’s, anyone can start building up their own investment portfolio.
Mr Mia has created a list of some easy tips for beginners wanting to start investing.
KNOW YOUR INVESTMENT
Investing is basically “putting your money to work in various ways”, one of which is buying shares in a particular company that is listed on the stock exchange or an Exchange Traded Fund (ETF), an investment fund traded on the stock exchange.
Financial information of public Companies’ is usually very easily accessible and the more ways you can look at a company, and see value, the better. Look into facts such as to how has the company been performing over the last few years. Are sales healthy and increasing from the previous year? How does the company compare versus competitors?
The average age of investors is between 24 and 35, showing that young people are taking the initiative to invest in shares. The sooner you start the greater the period during which you will be earning returns on your investment.
KEEP IT CONSISTENT
Just as it is important to save regularly the same principle applies to investing. Investing regularly will build your wealth as you are buying more shares.
It is a big no-no to borrow money to use for investing. Because investing is such a long term commitment and nothing is certain, there is a chance that you can end up losing money and owing on your debt leaving you in a very bad financial position. ALWAYS use money that you have.
DON’T MAKE PREDICTIONS
Shares go up, but they also go down. Trying to predict the direction of the market is difficult; even the experts are not always right every time.
Investing for the long term will let you ride out the unavoidable ups and downs of the market. Sometimes it can seem as if you’re riding a wave or a roller coaster. Stay the course and enjoy the ride!