Nature gives a clue in it’s four main elements: Earth, Fire, Wind, and Water.
1.Real Estate, Gold, Stocks, and Bonds: Divide your investment funds evenly between these four areas and you will always be hedged against the inevitable ebbs & flows of the market. When one goes down, the other goes up, and you sleep well knowing you are covered.
2. Use the right resources for your research. Remember that securities brokers are sales people. They can help you to some degree, but they make money whether you do or not. Do your own research. Motleyfools.com and Morningstar.com both have excellent track records and free information suitable for beginners, or seasoned investors.
3. Keep adding funds to your investment portfolio, routinely. Dollar cost averaging will always ensure you are not buying high and selling low. Invest the same dollar amount into your investment account each month.
4. Make it fun. If you like learning, then it’s easy. View active investing as a learning experience and the process will not feel burdensome. It should be a pleasurable experience, and it’s up to you to find ways to make it fun. Practice with a small online broker that charges low fees, such as Sharebuilder.com or others that charge a low per trade fee and require no minimums.
5. Pay it forward. Donate a percentage of all your investment profits to a charity, church, or organization you value. While you do it for more noble reasons than fattening your own wallet, watch your portfolio grown in proportion to what you give. It’s truly amazing and many agree that tithing part of your income is one of the most important investing principles.
6. Read. Never before in history have so many books and articles been written on investing. Many can guide you to smart decisions; some can change your life. One of the best books written on the subject is: “Wealth Happens One Day at a Time: 365 Days to a Brighter Financial Future” by Brooke M. Stephens. This book is an asset to your library because along with sound advice in clear terms, it also lists a fine selection of quality internet resources and other books to read, so you won’t waste your time.
7. Keep it simple. If you can divide your investment portfolio into four main areas: real estate, gold, bonds, and stocks, you are set. Start small, keep it simple. Sell less than you buy. Buy only things that make you money.