Women are taking more chances with their money. We’re aggressively pursuing ways to make our money work for us. Many of us are overcoming our fears of the stock market and getting off the fence and starting to invest. I didn’t start investing in stocks until just this year. Although I have owned investment properties and have had 401k savings, I hadn’t yet ventured into the world of investing in stock.
It may have been the volatility of the stock market for the past decade or maybe even fear. I had become quite conservative with how I handle my finances. I truly believe that I have PTSD from the economic crash of 2009. But still, I found myself intrigued by the stock market and decided to take the plunge. I started by learning how to trade penny stocks. I achieved some financial success, but it was enough that I was sold.
There are quite a few things to consider before you get started. You definitely want to do your own research. Then, use this post as a mini-guide to getting started.
Make an Informed Decision
Whether you decide to take a class, an online course, or read several books on investing in stocks, it’s important that you learn as much about investing as possible. Make an appointment to speak with a professional. Even if you decide to go it alone, you’ll get valuable information from meeting with someone that handles stock investments for a living.
Tip: There are various online tools available to help you get started. Be sure to use a website or app that is secure.
Invest in Businesses You Understand
When you consider investing in stocks don’t’ just buy into random companies. Invest in businesses that you understand and are familiar with. You want to have some knowledge about the industry your considering.
For example: If you work in the real estate industry consider investing in REITs. If you’re a beauty blogger or love makeup, look into up and coming beauty companies.
Don’t Let Emotions Cloud Your Judgement
Some investors struggle with their investment decisions because they allow their emotions to the get the best of them. To be an effective investor, you’ll need to be able to keep a level-head. It’s important that you are able to weigh the pros and cons of each decision, despite any fear you may experience regarding the potential outcome.
There’s money to be made and the prospect of a quick return on your investment is hard to resist. But it’s important for you to maintain the proper perspective. Investing isn’t trading.
Create a Broad Portfolio
Over time, your aim should be to create a broad investment portfolio. Which means that you invest in various companies and industries to create a diversified and balanced portfolio. By doing so, you reduce the risk and increase your chances of success. Some of your stocks will produce short-term results while others will have greater growth over time.
Tips: Even if you have a broad range of investments, be sure that you have done due diligence on each company – know where your money is going!
Have Realistic Expectations
We all want the best and highest returns from our investments but it’s important to have realistic expectations about potential performance. Disappoint is the fastest way to convince yourself to stop doing something. And while you may very well hit the jackpot and achieve big returns on a few of your investments, you’re much more likely to build a solid nest egg over time.
There is so much more to learn about investing in stocks. These are just a few of the basics to help you get off the fence and start building your own investment portfolio.