Starting your investment journey doesn’t have to be daunting but it should be exciting. It is important to remember that Rome wasn’t built in a day and your investor career likely won’t be either. Make sure you learn the dos and don’ts of the investment world before you just throw piles of money at it, especially if it is not just your money. By following these 5 handy tips, you can start a successful investment journey today.
- Figure Out Your Investment Personality
Some of us are natural risk-takers and the rest of us crave a degree of certainty. There is space for both personality types in the investment world so don’t be too hard on yourself. There are times where both worlds will intersect and the risk-takers will want to invest in a sure thing, just like there will be times where the safe investors will want to inject some excitement into their portfolios. The key thing is to decide what type of investor you will be for the majority of the time.
- Decide What Your Investment Needs Are
Are you looking to retire by the age of 50? Do you want to start investing so you can send your new-born baby to college one day? Decide why you are looking to start an investment journey and then use that knowledge to guide you down your specific investment path. There is almost no chance that your investment needs will be the same as everyone else’s and nor should they be – investment portfolios are not meant to be a one-size-fits-all kind of deal.
- Set Your Own Investment Pace
Hitting the ground running has always been my strategy for most aspects of my life and my investment journey was no different. What works for me and what will work for you might not be the same strategy and it probably won’t be at the same investment pace. Starting slowly is nothing to be ashamed of, dip your toes in the investment waters by downloading a free stock app and learn the ropes at a speed you are comfortable with.
- Know Your Market
Get to know what works in the stock market by reading books or taking an investment course that is designed to help you navigate the modern financial world. The award-winning financial gurus that came up with theories and policies like portfolio optimization and investment diversification did not suddenly wake up one day armed with this knowledge – they worked hard to learn what works in the market. Use the trial and error stories of others to shape your future investment strategy.
- Know Who Your Friends Are
Money has a nasty way of changing people so before you take investment advice from strangers, or even from so-called friends, you must do your research and investigation. Be aware of false friends who come in the form of dodgy investment professionals with Ponzi schemes because their interests may conflict with yours. Be honest with yourself for your entire investment journey and learn to listen to your gut feelings – they will not fail you
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