Ways to be a smarter investor

Investing is always a gamble and you will never be able to be 100% sure about what the markets will do. However, you can always be smarter when it comes to making investments. When it concerns your livelihood, it is essential that you invest in a smart way. Here are some tips on how to do that.

Bull markets don’t last forever

When the going is good, it is easy to make money. A bull market means that prices are continuing to rise across the board, so your investments all look very smart. However, bull markets do not last forever and when prices finally off the cliff, you have to be ready. Bull markets can lull investors into a false sense of security and make them overestimate their abilities. Investors start to think that it is all down to them and they become overconfident in their abilities. This is dangerous when the going gets tough.

Keep things simple

Grabbing a piece of every shiny new investment that comes along will only serve to make your job harder, as well as making it so you don’t become a specialist. Becoming a specialist is the best way to go because you will get a real understanding of the markets that you are trading in. If you go for a wide spread of lots of different investments, then you are unlikely to get a good understanding of any of them. Diversification is good, but only up to a point.

Remember fees

Fees are the hidden factor behind whether something is a good investment or not. Sure, you can boast about how you bought shares and then sold them when they were twice as high, but if the fees and commissions took out a big chunk of your earnings then it’s not that impressive. There are all kinds of fees to keep track of – mutual fund fees, ETF fees, RSRP fees and RRIF fees.

Always stay informed

As an investor, it is part of your job to stay informed. The markets can be swayed by all manner of political and economic events. Even Kylie Jenner doing a social media post about how she never uses Snapchat any more is enough to make investors sell their shares. With smartphone notifications, there is now an easy way to make sure you stay up to date, all of the time. Financial news website The Bull share tips can keep you up to date with the latest market news, and they also offer free monthly stock tips for investors. You can also use apps such as the Washington Post app to make sure that you are notified whenever something big happens. You should also read and follow trading publications so that you can get good advice about your investments.

Don’t get distracted from your strategy

When you work out a way of investing that is solid and makes you a steady stream of money, stick with it. This doesn’t mean that you shouldn’t change things when news and current events are going to affect your market but it also doesn’t mean that you should get swept up in market analyst predictions and investment strategists scaremongering.

Post a Comment

Previous Post Next Post