Thinking about investing, but the stock market scares the jeebies out of you? Don’t be afraid, be informed. If you understand some stock market basics, like when are the opportune times to buy and sell, then you will be able to grab some great deals and hopefully make yourself a bit of money. Play a new hand in life and start an investment portfolio. But before you run out and sign up for a new E*TRADE account, check out the top ten investment tips!
Think Before You Buy
There is no place for hasty decisions if you want to earn a substantial profit from your investments. Instead of believing the brokers, you must conduct a comprehensive research and then invest accordingly. So be pro-active and research the source of the stocks (i.e. industry, company, performance) before making a commitment.
Look at the Long Term
Investment is always long term—no matter if you’re putting money in for short term gains. Be sure to have a balanced investment portfolio with both long term investments (bonds, Roth IRA), in addition to short term investment (stocks). Focus on investment rather than trading to have a secure future, because trading can often incur a substantial loss.
Don’t Expect Too Much
This happens mostly with first time investors. You want to learn from their mistakes of investing money in some financial product and expecting it to provide 300% – 400% returns within short time—quite unrealistic. Remember the story of the tortoise and the hare when you start to watch your stocks (daily)!
Self Confidence is Key
Even if you are a newbie investor, do your own research before investing rather than depending on others for information. Derive a strategy, set a goal, and follow through rigorously. You are an intelligent individual (you attended college!), so trust your better judgment when it comes to where you put your money. If it seems too good to be true – it probably is!
Avoid Switching Investments
Avoid making the mistake of withdrawing money from an investment because another stock is performing better. Not all investment will reap benefits at the same time. Just as the rule of thumb during your commute—stay in your lane, you’ll get there eventually!
Join a Group or Organization
Join up with a group peers who are endeavoring the same investment process as you. There are many student and young professional investment groups out there. Aligning with others will help as you share tips and ideas for investments. After all, with investing what you don’t know can hurt you financially.
Keep Regular Check
Investments are for long term. This, however, doesn’t mean you don’t have to bother about with your investment performance. Keep a regular check on all your investments. Some might even need minor amendments for maximum profits.
Get to Know Your Investment People
Research and know more about the people associated with your investment. Including your banker, consultant, and broker—your money is in their hands.
Don’t Allow History to Repeat Itself
Most likely you will commit many mistakes that seasoned investors already have. However, learn from your mistakes and make sure you don’t repeat them. Avoiding historical errors will help you develop into a prudent and proficient investor.
Have No Doubts
As a beginning investor, you will have lots of doubts about various investments. Be sure to speak up, ask questions and clarify every detail before going too far. You are investing your hard earned money, so it’s not a disgrace to ask!
Get To It!
The stock market waits for no one. Just like your sister told you “you snooze you lose.” So now is the time to take advantage of affordable stock options. While long term investment is slow and steady, you do want to make sure to create a balanced portfolio, and invest in the slower moving yields for the future. After all, if you make a killing in the stock market, you can tuck those dividends into your long term investments—and have a nest egg to look forward to! What are your hot stock tips this year? Love to hear them!