+Best Investing Advice - Advice for the best investing is a hot commodity, something many people are looking for. Investing isn’t like finding a quarter down the side of the sofa over and over, it takes work and a strong head. That is what I have deduced from it all anyway!
+Best Investing Advice
For those of you that read my blog regularly you will know one thing. I am not an investor, nor do I have extensive guru level information on the subject stored in my genius brain. Nope, I am some dumb ass just now seriously looking at the idea of investing starting with small lumps of cash. I have started my reading, listening to books and getting myself more familiar with the whole industry and I have pretty much come to the conclusion that no one can be 100% sure of what they are doing. Investing is a risk and any advice is just that, advice! You still need to stand on your own two feet, go by your gut instincts and do what you see as a sensible thing. You will lose money and you will make money. The trick is to try and stay above the line and in line with market growth but if you don’t you can’t be upset, that is the nature of the whole thing!
Earlier today I wrote a post on one of my other blogs about the Best Investing Advice and I thought the tips that I shared there (and will be living by when I start to invest very soon) were worth sharing and getting feedback from here.
Be realistic - Investing can yield massive returns, just look at Warren Buffet, but it’s not like that is the norm. A fruit machine can give a massive pay out to a person who walks by and puts $1 in but 100 people before him have lost $10 each. The markets are not of course quite fruit machines but they can do random things and even people who know what they are doing can get burned. So just try and think sensibly about your expectations.
Only invest spare money - I know theoretically no money is spare but I don’t think money that may be needed for other things (emergency funds, money that could pay down your mortgage etc etc) should ever be used for investing. You could lose it all and you need to not be in a sticky situation if that happens.ADVERTISMENT: CONTENT CONTINUED BELOW
Diversify - This is a very standard bit of investing advice but that’s because it’s important. You know the saying “Don’t put all your eggs in one basket”, if the basket drops you break all your eggs and that is good life advice. Successful investors usually have all kinds of stocks in a variety of industries or invest directly in things like Index Funds or low fee Mutual funds.
Know when to fold - When your stocks are dropping in value it’s tempting to hold and hold and hold in the hopes they will start rising again. You need to detach from the emotion and set limits. If your sticks drop x amount you will sell, set yourself a rule and stick to it unless that particular stock has any special circumstances or you really don’t care about the money!
Have fun - Investing is a kind of game. The more you learn the more you will want to try and the longer you hold stocks the more you will get your feel with how to deal with them. Don’t be shy of going by instinct if you can spare losing the cash and just try not to take it too seriously. It’s all a game, right?
So they are my best tips. Now the reason I shared these here is because I want your feedback and advice. Of course there are a million strategies but they can all be disputed, proven wrong and often based partially on luck of the draw. Do you have any solid tips, things that help you overall even if you win or lose money in the crazy world of investments.
Thanks for reading and I look forward to your comments.