Investor Start-up Guide

When new to the world of investing, it is always key to do research and get advice from trusted, informed sources as much as possible. Depending on your goals, needs and the economic climate, you can develop an investment strategy that will satisfy your expectations, but maintaining a solid track record can pose a challenge to even the most prosperous scenarios. We will share a few tips with you.

Think Long-term

Investing your money is not a way to get rich overnight. While the value of your portfolio can grow substantially in a short period of time, studies have found that medium to long term investing reaps better rewards for the investor. Actually, it has been proven that investors who carry out less trades per year (that is, they buy and sell stocks less often) consistently outperform those that trade more frequently. While this is not always the case, it is a good rule to remember.

Don't Get Caught in the Hype

New Investment "opportunities" with "get rich quick" promises, bombard us everyday via the media. While these "hot stocks" may have increased substantially over the short term, but they also face the serious risk of taking a large dive as well. It is best to get sound advice before making such investments.

Re-invest

Don't just spend your dividends.re-invest at least a portion of it. Doing so speeds up the process of compounding.

When the market is moving against your trading position, liquidate the position quickly. Do not sit and 'hope' that the market will turn in your favour.

One should try as far as possible to build a portfolio with a fairly wide range of stocks, bonds and other investment instruments to help cushion you against the fluctuations on the market.

Keep Focused on Your Goals

Investing your money can bring you substantial rewards, but it is important not to forget the reason that you decided to invest in the first place. Don't spend your earnings on an extravagant vacation, when your initial goal was for a home or to further your education.