Engaging in a venture that is by nature highly volatile can be very intimidating, even off-putting to some–and yet investing remains to be one of the top ways ways to be financially free. While there are many horror stories with trades gone wrong, there are just as many successes. It’s never about luck, but framing an investment strategy that will allow you to win repeatedly over time.
Winning in the stock market requires the discipline to completely follow your strategy and ignore the noise of the crowd, but a general rule of thumb if you are a long term investor, is to invest in companies that are doing well.
Here are some investment tips from Marvin Germo, Stock Smarts CEO:
Invest in Yourself
This might seem like funny advice, but this is the very first thing you should do. You are your greatest asset and you will only go as high as what you know. You need to not just educate yourself but you need to invest in building your skills. You need to develop skills that will bring value to people. Because people will pay you by the amount of value you give them.
Understand Where The Money is Going
Before jumping right in to buy a stock at an attractively low price, know and understand first the dynamics of the industry you’re investing in. Learn how it works and how to read the news properly–don’t make decisions based on every bad piece of news you read. Check first how the news impacts the company because if the stock drops, but nothing changes in the way the company grows and makes money, that should be the best time as an investor to put more money in and buy. People tend to be cautious and overreact at the slightest hiccup in the stock market. Just buy amazing companies when everyone is fearful and sell them when everyone becomes so greedy and want to buy.
Know Your Risk Tolerance
Do you like to take big risks for big rewards? Or do you like to win the race slow and steady? Wealth is a process, There will be investments that will take your portfolio to the next level, but if you don’t feel comfortable with the volatility, place a small amount first.
We arranged our list from moderately conservative to aggressive, and currently have ten funds to choose from. The bank recently introduced three new funds–the Asia Pacific Equity Feeder Fund, the US Equity Index Feeder Fund, and the Global Equity Index Feeder Fund, all for those with aggressive risk appetites. The first fund is a dollar-denominated unit investment trust fund (UITF) that allows the public to invest in highly profitable companies across Asia; the second fund focuses on large, mid, and small capital US equities with different growth and value styles; finally, the third one enables the public to invest in developed and rising economies in the world market.
Long-Term Investing Works
According to Germo, you should know that in investing, there’s no such thing as perfect strategy. If watching the market frequently isn’t for you because of your hectic work schedule — try to consider — being a long term investor. It’s about buying good companies, that are growing and holding them to the fullest extent of its potential.