A profitable outcome is emphatically not the result of luck, but the application of a few simple basic principles that every successful investor holds at heart.
These principles over the years, have been the traveller’s guide to successful investors and as a beginner, when you stick to those tips, you are bound to be a successful investor.
There are several clouded tips, but the following are the basic tips you should hold at hand:
Develop On Your Investment Literacy Level
The need to be knowledgeable in what you are venturing into cannot be overemphasized! You need to read, ask questions and source for information on what you want to invest on. Before you make your first investment, it’s needful to spend some time building financial and investment literacy.
A Financial Advisor
It is said that no man is an Island. As much as the investment is solely your responsibility, you need a mentor in the form of a person and not just from the investment informational literacy you gathered. The reason for a mentor is for you to have a human factor who can see outside your scope and thereby guide you on the right actions to take, as you may be clouded with your need to get returns and thereby you go oblivious of some hidden facts.
Diversify your Investments
If you for example, have 10million to invest right now, and you invest the entire amount in a single investment that you have a good feeling about, you risk losing your entire investment in one fell swoop. As much as investment carries risk prospects, it’s wise to take a calculated RISK.
Be Aware of The Times/Seasons
A good fisherman knows when to throw the net and so does a good investor. If you neglect this tip, chances are, you may be investing into the right thing at the wrong time. Know what’s happening at the stock market and the investment world as a whole before plunging in your resources. Knowledge of the exchange rate of Dollar/Pound especially in the developing countries will go a long way in guiding you rightly as a beginner investor.
Start Out With Little Money
As a new investor, DO NOT be so enticed into a venture, no matter how juicy it is that you put in your life savings into it. First, look at your budget, put in a comfortable amount of money and watch it grow. The reason for this, is so you don’t go stranded and probably starving yourself and even family just because you threw all your resources into a profitable venture.
To the beginner investor, the earlier you know these tips, the greater your success. Just remember to walk before you begin to run…
What firsthand additional tips can you suggest for a beginner investor?