2020 is coming to an end. Follow below investing tips to start the new year strong!
1. Set a goal
Set a goal. Why do you start investing? When you have a goal in mind, it’s easier to follow your plan. Do you want extra money for old age, or save money for your dream car? And when should the dream be realized? These are all essential questions you should give your own answer to.
2. Stay cool while investing
Stay cool. Many people are carried away by the mood in the stock market. They invest with the heart instead of the brain, so to speak. Media and news can affect the stock market and its investors very much. It is important to beat cold water in the blood, whether you hear negative or positive publicity.
The price of stocks can fluctuate a lot as there are many factors that can affect it.
3. Only invest in something you know
Do not follow the advice you get through Facebook comments, from your friends or on various blogs blindly. Do your own research before investing, otherwise, the chance of making a stupid investment is very high.
4. Think long term investing
Perhaps one of the best advice available when it comes to investing. There can be large fluctuations in all markets. There is no reason to lose sleep just because the stock market has fallen by 10%. Remember that your investments should not be raised tomorrow anyway, but maybe in 40 years.
DID YOU KNOW? - Investing versus Speculation
What is the difference between investing and speculation?
The vast majority of people who choose to speculate end up losing most of their money. Speculation is a shortcut to getting poor. Getting rich requires investing and investment is characterized by slowly getting richer. Investing is about balanced risk and a long time horizon. Read More here
5. Invest your own money
A sure way to a big loss is if you start investing borrowed money. Investment is never without risk, so be careful about borrowing money for your investments. Instead, put money aside each month.
6. Invest every month
Set aside at least 10-15% of your monthly income aside for investing. Whether it is 200 or 5,000 per month, it will be worth the return.
7. Spread your investment
Do not put all your eggs in the ONE basket, as it may fall to the floor! When you have a broad portfolio, you can handle losses better and you run a smaller risk than with a thin portfolio.
8. Follow your strategy
Once you have laid out your strategy, follow it. If your strategy is a broad portfolio of medium risk, then do not get carried away if one of your stocks rises wildly. Instead, sell-out and invest the money elsewhere.
You need to start right away, here is why!
- Your investments accumulate for many more years!
- Your return will be much larger over time
- You have more time to learn and fail
- You do not miss good opportunities
Investing tips by firejourney
9. Find more money
If you take investment seriously, you want to invest as much money as possible. Therefore, investing can serve as motivation to find money elsewhere in the budget and start living for less money.