We're all taught that it's
good to save some for a rainy day but simply setting a side a portion of our
income is not going to cut it nowadays, what with the inflation always rising.
According to a senior
investment expert of Corliss
Online Financial Mag, most people feel intimidated at first of the idea of
investing but it's not really as daunting as they imagined. Though that's
naturally biased coming from a pro, we're fortunate enough that he shared a few
choiced investment tips meant for first-time investors:
It's not just for the rich.
You don't need to have thousands of cash first before you can start dabbling in
the stock market. All you need is the courage to endure the rise and fall of
your savings. Keep in mind that investing is not something that quickly pays
off. It requires time and patience so you have to be really committed in the
idea that the money you set aside must be left to grow.
Find an adviser. Seeking the
advice of someone who's well-versed in his area of expertise is always a smart
move. An investment advisor or a stock broker navigates the ins and outs of
investment on a regular basis so partnering with one can help you greatly.
Getting this choice right will
make a big difference on what kinds of investments you can access, how much
commission fees you need to pay and a ballpark figure of the eventual payout
you'll get. Be wary of brokers who are not willing to go down to your level and
teach you the basics as they might take advantage of your ignorance.
Stick with the basics first.
Before you engage in volatile stocks that tend to move drastically, it'd be
better to start with the staple ones to get a feel of things. It's not wise to
enter the stock market with a get-rich-quick mindset so test your patience with
stocks that you can hold on a long-term basis and with minimal risk.
Consumer stocks like those in
the medical, apparel or food industry are considered relatively safe because no
matter the circumstance, people will always need those commodities. Just don't
expect very high returns soon.
Place your eggs in multiple
baskets. Diversification is a common tactic in investing as mentioned by Corliss Online Financial Mag,
mainly as a means of insurance against unexpected events. So in case that one
of your investments drastically fell, you won't lose everything.
Start investing now. The world
of investing might be a little daunting for a first-timer but you have to start
somewhere, right? Armed with a basic
knowledge of the whole thing and a reliable broker, you might realize it is
worth your time after all and prevent the common pitfalls beginners often make.
The soonest time is now so
never mind that you're still young -- in fact, you're in the best position to
invest. Just set aside a fixed amount that you can realistically do without and
it can give you returns in the years to come. The earlier you start the more
money you can end up with.
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