New to the Investment Game? Top Tips for First Time Investors

Investment, money, interest and financial concept.
06 Feb 2019

Over 60% of U.S. adults find investing scary or intimidating.

However, investing doesn’t need to be a daunting prospect. If you follow our simple top tips for investing, you’ll learn how to invest money sensibly.

If you’re new to investing, then get started with our advice on how to invest money below. Let’s go!

1. Set Out Investing Goals
If you’re going to succeed at the investing game, then you’re going to need to determine your investment goals.

Over 1 in 3 Americans have almost no retirement savings. If you want to save money for your future retirement, then you need to calculate how much you need to live after you finish work.

Are you just looking to boost your vacation budget from $500 per year to $3,000 per year? You need to judge how much you need to invest to make the necessary gains.

2. Build a Diversified Portfolio
The old saying “don’t put all your eggs in one basket” is particularly wise when it comes to investing.

You may think that an investment prospect looks like an absolute winner. But, you need to distribute the risk with a diversified portfolio.

Therefore, mix your investments between stocks, bonds and other assets, such as real estate to spread the risks.

3. Ride out the Waves and Stay Calm
The economy inevitably encounters booms and busts. You need to stay calm when your investments hit slumps.

You’re in it for the long haul! Don’t panic and withdraw your investments at the first sign of trouble. Just because your portfolio has dipped 2%, you don’t need to pull out.

Even if you lose money in the short-term, history shows that the cool heads win out in the end. However, if you start to see sudden drops of 30% – it’s time to get out of there!

4. Do Your Research
To develop a successful portfolio, you should only invest in what you understand. For example, if you don’t know anything about the automobile industry, don’t invest in Volkswagen shares.

You need to develop an understanding of the market you want to invest in, as well as the strengths and weaknesses of your investment, in order to determine future returns.

Furthermore, before you decide on how much risk to take, figure out what this means to you. A good principle to live by is that you should never invest more money than you can afford to lose.

But, this doesn’t mean you can’t invest if you’re low on cash. Instead, drip feed your investments every month with small amounts of money.

5. Feeling Lost? Ask for Help
Many people are put off investing simply because they find it confusing. You need to know that you’re not alone in the investment game.

You can take advantage of investment management advice from expert financial advisors to better judge how to invest your cash, how to invest in stocks and the best stocks to buy.

Advice for People New to Investing
Even if you have little money, you can begin investing. However, be careful who you seek advice from when you are new to investing.

Friends and family may suggest current stocks mentioned in the newspapers which claim to be the “best stocks to invest in.”

If you really want useful help and to achieve your most important life goals contact us for a complimentary meeting.


Daryl Seaton