Investment Tips for Beginners

investment tips for beginners

 

Investing in the markets is a great option to provide for your financial future. Making some planned and informed choices can prove to be very lucrative for you in the long run. But are you sure that you know the ins and outs of the investment market?  I know I don’t, but I have been trying to learn over the past few years.  Along the way i’ve discovered a get investment tips for beginners that have helped me make sense of this brave new world.  If you are considering investing for the first time, then things might seem pretty confusing to you. There seem to be so many options to choose from and you hear all sorts of buzz words: dividends, ratios, stocks, bonds, ETFs, F/X and many more. So how do you go about taking up the right option for yourself? Worry not! Read on to get some beginner’s investment tips that may help you enter the foray of investing. (I am not an expert – these are investment tips based solely on my limited experience).

1) Be wary of chatter about “hot stocks”: You will come to hear a lot of “tips” to choosing “hot stocks” in the market which, according to people like your barber or hairdresser, will give you great returns. Steer clear of these amateur soothsayers (unless you happen to know the Wealthy Barber). It is very important to consider the source of such information. A key investment tip is to do your own research before making any investment. You can even ask an experienced investor to help you get started on the right track and avoid such “crowd noise”.  In this writers opinion, an Exchange Traded Fund, or index investing, will help you steer clear of chasing the “hot stock” or investment tips that are the newest fad.

2) Avoid hasty decisions: You will be tempted by “once in a lifetime real estate deal” and other similar offers in the investment market but never let these influence your plans. If a deal sounds too good to be true it likely is. Develop a personal financial plan to determine your goals and needs and proceed with that plan. If you are interested in the golden egg, research the facts about the company yourself and determine what investments you should make depending on how much you can afford and what risk you are willing to take. 


3) Invest money that you can afford to lose: This is really important investment tip for a first time investor. If you invest only so much that even if you suffer a loss, it won’t take a toll on you and your family, the learning process becomes easier.  You make investments to get greater returns in the future, not to suffer financial losses.  Some financial losses will occur eventually, this is the most basic of investment tips for beginners, but losses are not the goal!

4) Think Long Term. Investment is always long term. Short term gains are always tempting but you also run the risk of incurring huge losses with them. Look for long term and safer options for investment over the newest hottest trend/stock.

5) Start with well traded companies. Unless you are a big fan of risk, you likely do not want to start your investment career with an unknown company. Look for companies that have been around for a while. If you suffer a loss within the first few months of starting with your investments, you will probably be reluctant to try your luck at the investment market again. Therefore, it is always advisable to play safe, especially if you are a beginner.

You will perhaps make some bad decisions and lose some money. Don’t lose heart. Keep learning and trying. This is how you will learn and better understand the market. Investment is a lucrative proposition, stick to some basic investment tips and you will position yourself well. You can even take online courses and play online games to learn the art of investment.  Of course you should look well beyond these specific investment tips. Always keep your objectives in mind and you will be a more educated and experienced investor over time.

Do you have any investment tips to share with beginner investors?

8 comments to Investment Tips for Beginners

  • Jamie

    I like your post but i don’t completely disagree with your last point. Yes, thy should start with well traded companies, but eventually if they want to have better returns, people should increase their exposure to some more volatile and growth stocks in market. This of course should be done in well balanced portfolio of stocks and bonds. In a case that investment doesn’t work out, you have cushion to fall on

  • Why the long term investment is safely and high earn as compare to short term investment?

  • Forex Agent

    In my experience working with the right brokers is the main key to successful investing in the market.You should choose a broker like you would choose Dr lawyer or account. Get referrals, interview and do your homework and check them out.

  • Carnival of Wealth #46 – July 10 2011 Edition — Personal Dividends - Money+Lifestyle

    […] to get employer match and then opening an IRA might be a better idea.”Sustainable PF presents Investment Tips for Beginners posted at Sustainable Personal Finance, saying “Some easy to understand and follow investment […]

  • What Other Bloggers Are Saying #8 | | My University MoneyMy University Money

    […] Sustainable Personal Finance shares some Investing Tips For Beginners […]

  • Which Companies Have The Most Promising Stocks?

    […] for the financial information you may need to make important investment decisions.  What other investment tips do you […]

  • What Other Bloggers Are Saying #8 - My University Money

    […] who hate cooking for themselves all the time (like me)Sustainable Personal Finance shares some Investing Tips For Beginners We are also included in last weeks…Carnival of WealthCanadian Finance CarnivalHave a […]

Leave a Reply

You can use these HTML tags

<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>