The following is a guest post.
‘Investing’ is a scary word for many people, enough to let their money sitting in their bank accounts for years. These people might have no idea on how to invest except that does not justify letting the value of your money drop year over year thanks to this low interest rate environment.
Regardless of the amount you want to invest, the basics remain the same. Investing can reward you with financial freedom in the future if done right. The following tips and tricks will help you make smart choices in the fabulous world of investing.
- Do not waste time contemplating if you should invest or not, this is called wasting time. Start your investment journey as soon as possible because time is money in the long run.
- Get educated; take the time to read books written by successful investors. Discover how the market functions. If you are truly committed, you will have to invest time in yourself. Focus on the basics of investing initially; there is no need to learn about complex products.
- Investing requires an online brokerage account so take your time in choosing the right broker. Consider??ANZ Online Trading,??they??offer investors a wide variety of investment products. You can trade stocks, options, funds, ETFs or invest in managed funds, IPOs or structured products online.
- Take it slow! If you decide to go the stock picking way, you might want to invest very small amounts. Try to gauge your level of risk and your emotions in the face of volatility.
- Remember that it takes time for your money to grow. There is no easy money in the stock market. You need to be patient, rushing into high risk sectors might end up costing you heavy losses.
- Consider index funds and ETFs. There is a huge line of products to choose from. There’s no need to hurry into stock picking. Start by buying a dividend paying ETF for example and watch your monthly income roll in.
- Set a Strategy in place, dollar cost average your way into the market. This means investing a small amount on a monthly basis. There’s no need to invest one big lump sum at once. A major advantage here is taking advantage of the market’s volatility. At the same time, iot is easier emotionally to ride the wild swings the market throws at you especially when you’re invested in index funds.
- Last but not least, make sure you invest through tax advantaged accounts. You get to save a lot of paperwork tracking income, profits or losses every year. Better yet, your profits are protected and get to grow in the safety of these registered accounts.