Years of experience thought me these 5 essential tips for stock investment.
It’s always nice to know that in time of need, we always have a backup that will help us to get through. After years of being reluctant and skeptic about stock investment, I decided to open an online stock investment account in June 2016 and have ups and downs with the journey. So here are the tips for self-managed stock investment.
1. Have an objective
This is the important tip for stock stock investment. Knowing the WHY of what we are doing to keep motivated. With the idea of retiring early and have more time to enjoy life with the family and friends, I decided to earn more with the stock investment than with the savings just sitting in bank account. But as this stock investment journey enrich my life experience, I would definitely devote myself to contribute to the community that share experiences to build awareness about the greatness of investment. At the end of the day, it’s not always about the money but the journey and experience to succeed and how were you able to share this rich experience.
2. Make a Plan
When my application for the online stock investment was approved, the need to fund my account raised. I need to make a plan on how to save and fund my portfolio. With the paycheck-to-paycheck lifestyle, I forgo some expenditures like dining out with friends, coffee dates with colleagues and a little of the shopping. Remembering the line from the movie shopaholic, “do I need this”, I use this a lot whenever I’m in the department store to resist the urge of impulsive shopping. In short, I saved some for me to be able to fund my stock investment account. I save up to the penny that I can. As an example, I consider the transfer fee from bank to my online stock investment account. Instead of transferring every after payday (which is twice a month, I transfer once a month to save the transfer fee. Once you plotted the plan, stick to it.
3. Keep a Record
This is one of the essentials that is most forgotten. The lacks of record causes you to lose track of how much is invested, therefore hard to assess if the portfolio is a winner or a loser. Start with comparing bank transactions with the online investment account transactions. Account the transfer fees so as all the transactions that I made in my online stock investment account, meaning record everything. I create a separate simple excel file for the amount invested and the buy and sell I made within the portfolio. Also, it’s not only vital to keep record of the transactions so as keeping notes of the books read, seminars attended or informative video watched. Having a record in hand will help a lot with the planning and keeping in control of your own investment.
4. Make yourself successful
Robert Kiyosaki quotes “the only difference between a rich and a poor person is how they use their time”. Dedicated investors devote their time to succeed and work hard to achieve their goal. On the contrast, there are groups of individuals who caught up with the “become rich fast” mentality that jumped into different types of investments that ended being scammed. This mainly because of engaging too soon on the inviting returns investments without studying it first or in short, procrastinate and have others do the job for them. I remember one speaker in the financial freedom seminar I attended said, “if it’s too good to be true, run!”. It’s ok to be skeptic of entrusting your hard earned money unless you invest to yourself to have a rewarding stock portfolio.
Having been said the need to investing to yourself in the previous point means learning. Read books, attend seminars and watch trading sessions are effective ways to learn about stock investment. Learning never stops as the market moves with different factors. We are lucky as we are in the internet era where the data for resources is almost borderless. There are e-books, videos from youtube, facebook pages and groups, and apps that can be used as learning tools. Look for tips for stock investment. There are a lot to learn about stock investment, examples are fundamentals, technical and emotional management incorporated with stock investment. Lessons learned can be applied in managing your own stock portfolio.
It’s great to have a purpose or a reason why we are working hard. Don’t be trap in a rat race and ended up nothing invested out of the years of hard work. Using the tips for stock investment, managing stock investment can give you rewarding returns if done right. Jim Rohin quoted “Formal education will make you living; self-education will make you a fortune”.
And I conclude this with the following screenshot (as of the time of writing) of my 2 year old stock portfolio to show that it’s possible to succeed with stock investment.
Hope you find this tips for stock investment helpful. So, go ahead plan your savings and open an stock investment account.
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DISCLAIMER: THIS POST IS NOT ENDORSED BY, DIRECTLY AFFILIATED WITH, OR SPONSORED BY PRODUCT OR SERVICES CITED. HONEST VIEWS EXPRESSED IS PERSONAL AND FROM MY OWN EXPERIENCE.