Five Things every new Investor should know

Gaining a simple understanding of investing and finance in general can be a very tedious long process. Investing is the ultimate key to financial stability and there are too many self proclaimed ways to do it. It needs to be kept simple and you must understand the basics and terminology involved in order to have the insight into investing. Investing is a universally unique tool. Everyone is in a different situation because of all factors involved, Lifestyle, Salary, and Beliefs. In order to meet your goals in investing you must first set goals. These should be realistic and only set after your foundation of investing is deep.

The first thing I believe every investor should know is how much they are going to spend. A smaller amount of money at first is better because mistakes might be made, but it is when mistakes are made that we learn.

The second thing would be an understanding of the markets, how they work, and terminology involved. To learn information on this pick up the book Investing for Dummies, Second Edition written by Nicholas E. Wright. This book encompasses all terminology and the application of strategies one might use to become a successful investor.

The third thing is never believe in scam sites that will you to sign up or pay for stock picks claiming ridiculous returns of up to a billion percent. These are not true, if it was, wouldn’t we all be rich?

The fourth thing is never trade based on someone else’s opinion always do your own due diligence and make decisions based on your research and feelings of what this company has to offer and where it will go.

The last things every new investor must know is don’t be afraid to make mistakes. These will help you learn, and you won’t make the same mistake twice. Investing is fun and filled with different experiences. Every time buying or selling a stock is a different unique experience and comes with something else new to learn. Always keep your mind open and always be on your toes.

Again, investing is a very complex way to make money. It is filled with people like me and you and also professionals. It is a game in a sense, the battle of supply and demand depending on what the people involved think the share price should be at. It is fun, and remember don’t be afraid to make mistakes.