Investing For Dummies
Common Mistakes to AvoidIt need not be mentioned that investment is a sooner rather than later game. So, if you’ve been putting it off, perhaps the time has come to get serious about it. After all, literally every second you put it off is costing you money. It also need not be mentioned that if you haven’t started thinking about retirement, that also happens to be a sooner rather than later game. With that being said, it’s also not wise to rush in and buy a huge number of stocks that deplete any working capital you may have had. Getting excited about investing is good, but not doing a bit of research and making mistakes is bad. A prime mistake of beginner investors, for example, is accepting stock market tips from acquaintances. Sure, your friend looks like he knows what he’s talking about, and he may convince you that he’s got it all worked out, and we’re not suggesting he doesn’t, but making your own decisions is a key rule. Research guides for stocks are available online. Check them out. Another common mistake is investing money that cannot be spared. Again, it’s good to be excited and eager, but sorting yourself out for the present is something that cannot be overlooked. Another key rule of investment is that it needs to be done with expendable cash, not with cash that is covering next month’s rent. Source: Pixabay
Tips And TricksBut now that you have an idea of what not to do, let’s talk about some things that should be done. A first good step is determining exactly what sort of risk factors you are willing to accept. This, again, is a decision you need to make yourself. Don’t let a “wise” friend push you in one direction or another. Are you still in your thirties, and willing to take a few risks? Or is retirement around the corner, and you want your cash safe and sound? These factors determine how you will invest. Diversification is another excellent thing to keep in mind. Since all stocks go through their ups and downs, you need to have your fingers in a few pies. This way, if one stock takes a dip, the others can keep you steadily above water. A final thought to keep in mind is a simple one, and it has already been mentioned; research. Yes, it is easy to invest in stocks, and likewise easy to make it work. But the more you know, the better the decisions you are going to make. Virtually all investment websites offer free guides, and you should be skimming them when you have the chance. Think of stock investment as a game, and you need to get better at it by constantly upping your skills via research.