Top 10 Investing Tips

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.

GUIDELINES

1. Let the market work for you. Stock prices represent the judgment of millions of investors. Don’t second guess it.
2. Investment is not speculation. It is not betting. The more complicated people make investing sound, the more you should be skeptical.
3. 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.
4. Practise smart diversification. Reduce unnecessary risk (holding few stocks, sectors, or countries). Diversification is key.
5. Avoid market timing. There is no crystal ball. Be well diversified to capture the returns whenever and wherever they appear.
6. Manage your emotions. This can be costly so try to remain realistic.
7. 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.
8. 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.
9. Consider the drivers of returns. Differences in returns are explained by academics as pervasive, persistent, and robust. Use this research to build portfolios.
10. 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 enquiry@hhw-uk.com

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.