How To Become An Investor
Step #1 – Approach
Decide how you want to approach your investment. Do you want to focus on the short term or use a long-term strategy? There are so many possibilities like stocks, funds, forex, or commodities. Whatever approach you prefer, you should stick to one. At least for the beginning.
Step #2 – Amount
Decide how much you want to invest. Do you want to make a lump sum investment or stack up your investment over time to take advantage of the dollar cost average effect?
Step #3 – Open account
Based on your investment approach there are a number of accounts available that you can choose from. You should do some research to find out which one best meets your needs. Other than that you also need to keep in mind that you should always have some emergency fund set aside as well as a savings account for quick access.
Step #4 – Diversify
Never put all your eggs in one basket. I’m sure you’ve heard this before. So don’t put all your money in just one investment opportunity but find some more to spread the risk. For example you could start by choosing five different funds to invest in.
Step #5 – Continue
This last step is critical for your long term investment success. Never quit and let compound interest do its magic!
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How your investment behaviour will make you money. What steps to take, and what to avoid. Watch today's video to learn more.
Posted by Lukas Xu on Wednesday, 8 April 2020