Welcome, thanks for coming, take a seat.
You’re new here, and first days are always nerve-wracking and overwhelming
So, I want to make this as stress-free as possible.
We’ve got lots to cover and plenty of time, so why don’t we start with a nice, easy one for this week’s edition.
You’re here because you want to start investing, right?
So, let’s start right at the beginning…
TO START INVESTING, IT’S IMPORTANT TO UNDERSTAND SOME KEY BASICS:
Set clear investment goals, both short-term and long-term.
Determine how much you can afford to invest.
Assess your risk tolerance and investing style.
UNDERSTAND THE BEST INVESTMENT OPTIONS FOR BEGINNERS:
STOCKS: Buying shares of individual companies.
BONDS: Debt securities where you loan money to an issuer.
MUTUAL FUNDS: Pooled investments that buy a mix of stocks, bonds and other assets.
INDEX FUNDS: An investment designed to replicate the performance of a specific market index, like the S&P 500 or FTSE 100.
ETF’s: An ETF (Exchange Traded Fund) is a basket of securities that trades on an exchange like a single stock. It typically tracks an index, sector, commodity or other assets, but can be bought and sold throughout the day at market price.
UNDERSTAND THE KEY PRINCIPLES FOR SUCCESSFUL INVESTING:
DIVERSIFICATION: Spread your investments across different assets to reduce risk.
INVEST FOR THE LONG-TERM: Investing for the long-term generally works better than trying to make quick gains.
INVEST REGULARLY: Consider investing small amounts regularly rather than lump sums.
UNDERSTAND FEES: Be aware of the costs associated with different investment options.
LEARN HOW TO GET STARTED:
Choose an investment account that aligns with your goals and investing style.
Consider beginning with low-cost index funds or ETF’s for broad market exposure.
Educate yourself continuously about investing strategies and market trends.
AND REMEMBER:
Only invest money you can afford to lose.
Be prepared for market fluctuations and potential losses.
Thanks for reading this first edition.
Join us next week as we start to break down some of the key investing jargon, unpack the week’s financial news and show you simple ways to put it to work as a beginner investor.
So, don’t forget to bring a pen and notebook!