Let’s
say you think you’re done with work. You've saved up a little, started a
business, but want to vary your investments. Let me tell you one thing
straight: share buying is not for the faint hearted, or the flippant.
It
doesn’t matter if your dad is a veteran at investing, if you’re a finance major
in college, or if you just realized you had extra money and you want to dip
your toes into it. Here are the crucial things that you seriously need to know
about investing your money in stocks, here are our best investment tips for you:
First
off, you must fully know how much you’re about to spend for your investment. Don’t
worry, you won’t really need to have a specific amount for this. In fact, you
can just give yourself a bracket so that you are more aware of how much you can
stretch/spend for a really good investment.
After
that, consult an expert and calculate if your portfolio can give you enough
dividends/ income to last you a lifetime. Also, remember to use very
conservative market assumptions here. Minimize your risk and be realistic.
Speaking
of risks, determine the risk quotient. The keyword here is determine. Do not
guess, but determine. Most of the time, several investments may strike you as a
one-off deal, with an awesome return and a very well written corporate profile.
However, if it takes a high risk quotient just to get your projected income, it
may not be the best investment for you.
And
yes, speaking of one-off deals, remember, in the end, that your investment is
like marriage---it must be for life. Do not invest on products or services that
strike you as just fads. So something did well on the papers recently? Don’t
get too carried away.
Lastly,
learn the jargon. Sometimes, they might look intimidating to your or you might
feel a little bit more proud once you realize that you’ve mastered investing
language, but really, you need it. Just remember not to show off, okay? Your amazing
investments’ dividends might just be able to pay for the jewelry your newest
prettiest gold digger wants for Christmas.
