Top 10 Investing Tips
Top 10 Investing Tips
Because depending on luck is not a sustainable strategy.
The media suggests successful investing is due to stock picking, market timing or accurate predictions. Some get lucky, but depending on luck is not a sustainable strategy.
Risk can never be completely eliminated; there are no guarantees about anything in life.
Consider these guidelines from experts at Holland Hahn and Wills.
- Let the market work for you. Stock prices represent the judgment of millions of investors. Don’t second guess it.
- Investment is not speculation. It is not betting. The more complicated people make investing sound, the more you should be skeptical.
- Take a long-term view. Over time, capital markets provide a positive rate of return. BUT the return is not there every day, month, or year.
- Practise smart diversification. Reduce unnecessary risk (holding few stocks, sectors, or countries). Diversification is key.
- Avoid market timing. There is no crystal ball. Be well diversified to capture the returns whenever and wherever they appear.
- Manage your emotions. This can be costly so try to remain realistic.
- Look beyond the headlines. The media is focused on the short term, which can give a distorted impression of the market. You don’t have to act on media hype.
- Keep costs low. Daily moves in the market are temporary, costs are permanent. They can seriously erode your wealth. Be mindful of fees and expenses.
- Consider the drivers of returns. Differences in returns are explained by academics as pervasive, persistent, and robust. Use this research to build portfolios.
- Focus on what you can control. You have no control over markets, but working with an adviser acting in your best interests can create a low-cost, diversified portfolio matching your needs and risk tolerance.
A chat with Holland Hahn & Wills Financial Planning is free and could save you a lot of worry.
For a second opinion or more details please call: 020 8943 9229 or email firstname.lastname@example.org
This article is for information purposes and should not be treated as advice. Individual circumstances should always be considered prior to purchasing any financial products. Investing involves risk – the value of investments and income from them may fall as well as rise and is not guaranteed.