Top 10 Tips to Successful Investing!
Top 10 Tips to Successful Investing!
Here’s 10 quick tips to get you started on investing and creating your winning porfolio!
1. Start Early.
The only way you can make the most out of the limited time you have is
to start early. The sooner you invest, the more time your money will
have for growth. If you delay, you will almost certainly have to invest
much more to achieve a similar result. Let the power of compounding
work for you.
2. Keep Some Cash Aside
It is always a good idea to have some money set aside in case of
emergencies. Maintaining six to nine months worth of living expenses
will insulate you from a sure fire formula for investment loss –
distress selling.
3. Know Your Risk Profile
What is the point of investing in the stock market if you are going to
lose sleep, or a heart attack (whichever comes first) every time prices
go through a rough patch. You need to be realistic about your risk
appetite. An investment advisor can help you determine your tolerance
for risk.
4. Never Forget About Inflation
Don’t fall into the false sense of security that very conservative
investments might give you. The returns may look respectable at the
start but not after you deduct the effects of inflation. Keep in mind
that risk is not just about losing money. It is also about not having
enough in the end.
5. Think Carefully About How Long You Can Stay Invested
If you plan to stay invested for a long period of time, say five years
or more, then it is okay to get into the stock market and let your money
work harder for you. But if you will need your funds very soon, you
are going to be better off with low risk investments.
6. Spread Your Money Across Investments
Don’t put all your eggs in one basket. Depending on your goals and
attitude to risk, you will probably want to spread your money across
different types of investment – equities, bonds and cash. You may also
want to diversify within each of these categories. An equity fund, for
example, will invest your money in a variety of companies but you may
want to ensure you have a range of industry sectors too.
7. Invest Regularly
Investing regularly can be a great way to build up a significant lump
sum. You will also benefit from what is known as cost averaging. In this
way you hardly feel the pain caused by delayed gratification since you
are saving small amounts that you can easily afford.
8. Choose Your Funds Carefully
You should select investments based on your personal circumstances and
goals. Don’t assume all funds investing in equities are the same – look
at what a fund invests in and check if you are comfortable with its
investment style and objectives. Choosing the right fund manager is
nearly as important as choosing the right fund.
9. Remember That Time and Not Timing Is The Key To Successful Investing
Even the most experienced fund managers fail when it comes to timing the
markets. As an investor your concern should be to have as much time as
possible to stay invested. Take the long-term view and stay in a fund
that you are comfortable with for as long as necessary. Successful
investing is not a matter of timing but rather a matter of TIME.
10. Review Your Investment Regularly
There are a number of reasons why you might need to change your
investment portfolio. Your goals might have changed over time or your
resources might have changed significantly. Whatever the reason may be,
your life stage will play a vital role in determining the right
investment mix for you. It is prudent to review your investment once or
twice a year at the very least to determine if you are still on track
to hitting your goals
A friendly reminder to everyone who wish to invest/trade in the stock market. Don't dare to trade when you don't have sufficient knowledge about the stock market psychology. Otherwise, your investing is nothing but a gambling! You can't afford to lose your hard earned money in a split second, can you? For newbie, the best practice is LONG TERM INVESTMENT to ensure the maximum potential growth of your money. The least is 5 years or 10 or 15 years or more... Make stock market as your biggest piggy bank as Bro Bo Sanchez said. You can invest for as low as PHP 2,000/month faithfully. You will be amazed in due time that this becomes millions. In this way, the risk is minimized but the profit is maximized. If you want to have a mentor who would teach you step by step on stock market investment, may I recommend you the truly rich club of Bro. Bo. Sanchez. Promise you won't regret. Happy investing!
TumugonBurahinBuy your stocks now at low, low price. You'll be amazed when stocks rise in due time!