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7 Things You Need to Know Before You Start Investing...

Know your current financial situation. Know you debts level. Calculate your income and expenses by taking into account the following:

Mortgage repayments
Personal tax
Loans and overdrafts
Living expenses
Emergency funds
Car expenses
School fees
Credit card debts
Family commitments

Before you start investing your money on any investment products, you should know how much you could spare each month for investment. General rule is that, you should clear your debts first, then save and invest later. That is to say the more money you put aside now, the better it will be for your future. I would say put aside 10% of your income for rainy days. 10% is a small amount that you won't feel a pinch. Save it until you have managed to build a "dam management funds".

2. Prepare funds for dam management. This goes in line with point 1. You need to keep at least 3 to 6 months of you income as dam management. After you have managed to do that then additional money that you saved can be used to invest.

3. Protect yourself and your family first. By this point, I mean you should have the basic life insurance that insure you and your family against terminal diseases and accident. This is very important as even though you might loose all your money through investment and if you or your family members need medical attention, it will be well taken care of.

4. Know your risk level. If you are not able to take big risks, short term investment and swing trading is not for you. It's better to invest in mutual or trusts funds which will give a steady payout and have lower risk.If you are a high risk or medium risk taker, you can try invest in stocks, growth and hedge funds.

5. Diversify your investment. Expert would tell you it is a must to diversify your investment. Your investments need to have a steady mix of stocks, mutual funds and/or bonds. Beside that, your should invest in different industry and/or different regions. This will help you minimize your risk as fluctuations in the markets will not have a big impact on your investments. Your ideal mix will be 20-40% stock and the rest mutual funds and bonds.

6. Do your homework before you invest. It is good to seek expert advice. But, the money is ultimately yours. So you need to do some research and make a sound decision on what to invest even though your financial advisers might have already worked it out all for you. This is to make sure you know what you are investing and able to keep track of them. If your investments suffer loses you will be able to make a right decision whether to sell or hold if you know your stuff well.

7. Do stock take yearly if not frequently. Your investment might already be reaping in profits. But, it is good to know how well you fare at the end of the day. Reinvest the profits and celebrate if you have success. This will serve as motivations for you and will make you more determined to achieve your financial goals.

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  1. A great saying that is shared often in the investment world is that you never want to have all your eggs in one basket. Therefore, for any new investors I advise that you should spread out your capital into different funds.

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  3. When it comes to stock trading,one good rule of thumb is invest the sum you can afford to let go.That is one good investing tip.its also good to diversify ones investment.

  4. Great investment advice from my mentor. I'm looking forward to start making money just like you. Definitely family must always come first,family over everything.

  5. I really appreciate that you took the time to give investing tips and how to stay secure in the long run financially. I agree that leaving money aside, being prepared for financial collapses and spreading your investments out are very important skills to stay in control.

  6. This is an amazing free stock course that is a key strategy for anyone thinking of investing in penny stock. You don't want to jump into the market blindly.

  7. Great investment advice, is better to separate the money to invest from the money needed for other stuff, sometimes is eassier to let the emotions guide us and lost money.

  8. These are very vital investing tips necessary for anyone getting into stock trading. Great work putting this together!

  9. When it comes to penny stocks extra care must be taken since the stocks are so volatile. This is a great piece of information to always have.

  10. On top of all this, it's also a good idea to invest in your stock education. Ignorance can lead to great losses.

  11. I like these investing tips especially since they are aimed at new traders like myself. I have learnt a lot from this.

  12. I would urge aspiring new traders to add to this information the fact that one should also take the free stock course offered here. It really helps!!