There’s something to be said about going into business. It’s a great trade but will prove uneasy in no time, especially if you’re the type that’s looking for easy money. Going into a business will require a lot of time, no matter how simple the operations might be. So if you are holding a 9-5 job, investing may be more of a better alternative for you.
Investing doesn’t always necessarily mean putting money into something and expecting gains in return. Investing is all about looking at opportunities and seizing them at the right time. It’s a multi-faceted trade, but it can be broken down into really small parts for better understanding. If you’re looking at investing tips, here are the best from the best:
Identify your investing strategy.
One of the most important parts about investing is identifying what you are as an investor. There are at least five basic investment strategies: value, income, small-cap, growth, and socially responsible investing. Of the mentioned, income is the most popular. It generally involves buying stocks and securities to propel personal wealth over time.
Income investing is perfect when you want to have a great retirement. Or if you want to live your life a certain way. Popular types of income investments include bonds and mutual funds. This will require you to ask at your local bank if they’re offering such services. Most do, but the difference will be in terms. Look for online investing for dummies tips to proceed.
Value investing, on the other hand, focuses on investing in stocks with a smaller valuation that it should have. Billionaire Warren Buffet popularize this. Although it’s a sound investment strategy, this investing needs you to do thorough research. Plus, you’ll need to be in the know about dealings inside closed companies.
Growth investing is centered on capital appreciation. It’s the most straightforward of the bunch – you invest, then watch your capital grow. Small-cap investing is a specific kind of investment strategy where an investor looks at specific companies with small capitalization and buying their underappreciated stocks. Lastly, socially responsible investing is in a class of its own – it usually focuses on social consciousness, and ultimately, image.
Build your portfolio.
Building your portfolio may be the be-all and end-all of investing. For beginner and long-time investors alike, portfolio building becomes the lifeblood of any self-respecting investor. To build your portfolio, you’ll need to put in money, and put it in good stocks. A robust investment portfolio will give you better chances of hitting the big-time.
Investment portfolios need to have good stocks traded over time in them. For the uninitiated, this is basically your personal book – what you’ve invested in, what risks you took, what opportunities you’ve wasted. Your portfolio will reflect who you are as an investor, so make sure it reflects the right version of you.
If you’re building a financial portfolio, for example, the first part is to make your credit look good. Having money in the bank is only one part of the equation, and you best believe in paying off debts promptly when they came. It will be good for your credit score.
Invest in something you are genuinely interested in.
Listen, investing isn’t just about what works. Most of the time, it’s about what personally works for you. A good stock is a good stock – that much is a constant, but if you’re not particularly invested in that stock, no matter how good it is, it will still take the backseat. So a word of caution: invest in stocks that truly interest you.
This way, you have a horse in the race. It keeps you invested, makes you look at statistics, will compel you to research market trends. A good investor is a knowledgeable one, and to be able to be a learned investor, you’ll need to read. If the very thing that you need to be reading does not interest you in the slightest, then all bets are off.
Investing is an exciting trade. But the fact is, it also isn’t for everyone. When you want to invest, you’ll need to have the bravado and the savvy of someone willing to risk things. You’ll also need lots of courage to proceed with questionable opportunities, not to mention the business acumen needed to see things in perspective.