14 Tips For a Beginner Investor Right Now in The Markets

Tips for Beginning Investors

Tips for Beginning Investors

There is a wry old English saying stating that “only fools and horses work”.  Of course, even the most casual appreciation of British humour tells us that the statement should not be taken at face value and yet it does hold some merit;  the hard fact is that working hard alone is never a viable path to wealth and financial freedom. Which begs the question, how do the rich get rich?

Well the (legal and respectable) ways to wealth in 2022 are basically (1) be very good at a sport (2) make a hit app or (3) begin investing. Indeed through the wonder of compound interest, a sound bit of very simple investing here and there can soon amount to a very respectable passive income – as long as it is handled correctly that is.

In this post we are going to offer up our top 14 tips for beginner investors. Read these carefully and start investing in the market assets.

1. Start Investing ASAP

The best time to begin your investment journey was the day you received your first paycheck. The second best time is now. The earlier you begin investing the better.

2. Open an Investment Account

In order to start investing you will need to open some kind of account. This could be as simple as opening an ISA or it may entail signing up with a stock broker or an index fund.

3. Consider Hiring a Financial Advisor

If you can afford to take professional advice from a property certified FA, this will save you hours of research and may also save you from making a few rookie mistakes. If you cannot afford one, then don’t worry- there are plenty of valid investing resources online that can help you get your head around how it all works.

4. Decide Upon an Investment Strategy

Every investor needs a strategy. This will ultimately be shaped by your end goals, how much you can invest and your risk appetite.  For example, do you want to choose your own stocks and shares to trade or would you rather just invest in an ETF fund where the fund effectively invests on your behalf?

5. Avoid Stocks as A Beginner

Following on from the above, it can sometimes prove risky for beginners to choose their own stocks. Instead, consider Index and ETF’ funds or find a broker if you are dead set on individual stocks.

6. Consider a Trial Run

These days, these are stock market and investment simulators that you can try. This way you get to familiarize yourself with the tools of investing as well as put your investment strategies to the test before you put any money in.

7. Invest as Much as You Can

Some investors have a spare $1 million just gathering dust whereas are struggling to spare $50. Just remember that the larger your investment, the greater your returns. Whatever your financial situation is right now, it will improve once your investment begins paying off so do invest as much as you possibly can.

8. Be Ready For Downturns

Investments can go down as well as up. Over time, all markets experience turbulence and economies enter recession. Don’t get disheartened when this happens and keep in mind that for every bust there is an abundant boom to compensate.

9. Diversify

The key to real successful investment is to diversify as much as possible. A healthy portfolio will contain a mix of savings accounts, good ETfs, stocks, shares and bonds.

10. Keep on Investing

Don’t stop at your initial investment. Instead, keep on investing. You could set aside an amount each month for further investing ( a strategy great for ETF investing) or perhaps put in larger sums quarterly.

11. Look Out For Costs and Fees

Keep a close eye on how much you are paying out in costs and fees. For example, many online platforms charge an account custody fee so where possible, try to minimise this by using as few platforms as possible. Also keep in mind that small trades can sometimes be rendered counter cost-effective by broker fees and other charges.

12. Get Tax Advice

No matter where in the world you live, the chances are that any return you receive on your investment will be liable for taxation. To avoid getting nasty shocks and a back dated tax bill years down the line, get good proper tax advice within your first 12 months of investing so that you understand what you need to declare and what you need to pay over to the taxman.

13. Keep Accurate Records

Make sure to properly record every investment you make and every payout you receive. This will make your tax reporting easier and will also help to ensure that you don’t “forget” about an investment (you would be amazed how many people “lose” them!)

14. Be Patient

For the first few years, the returns you receive will be negligible and you may wonder why you are even bothering. Just be patient and let the compound interest accrue.

Final Thoughts

Investing is a tried and tested way to improve net worth and earn financial freedom. Furthermore it can also be pretty safe and is nowhere near as complicated as it might seem at first.

We hope that our top investing tips help you on your way and we wish you the very best with your investing.

About Sashi 547 Articles
Sashi Singh is content contributor and editor at IP. She has an amazing experience in content marketing from last many years. Read her contribution and leave comment.

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