This year, more than never, the fever of investments started. I am very glad to see that and that more and more people want to invest.
Many are stopping at “wanting to” and do nothing about it. Many are starting to invest, but most of the times end in losing their patience and even part of their money.
Maybe this is the reason why the knowledge in matters of investment and the Romanians interest to invest in various forms are so reduced.
This year I will approach this topic many times and I will try to come to your help with many materials, books, tools which you will be able to use in investments.
I am one of the fans of this phenomenon and I study every day methods and ideas of investments that can increase my monthly income.
But before starting to think at large investments, before thinking about profit, you must take into consideration the following investment strategies.
There are more than a few advices you must take into consideration when you want to start investing.
Read these investment strategies, understand them and apply them in your investment process. They are perfect for you if you are just starting.
15 Investment Strategies for Beginners
1. Shall I invest? Yes! Now is the right moment! If you are looking for the right moment to start investing, you found it. It is now!
There will be no better moment for investments than now. The later you start, the more you will realise that you should have started earlier. The investment process is quite long and it is good to start as soon as possible.
Read more. It is very important to read a lot about this process before starting to invest. There are many free E-books or Books talking about this topic.
Follow specialised blogs. Along with reading books, it is very important also to follow specialised blogs or websites that write about investments and financial education. They can integrate you easily in the current environment of investments and can give you a very good overall image.
Contact an investments adviser. He / She can help you with advices on how to invest better. He / She is the person you should find answers to all your questions. You should find out also from him/her what are the best places to invest, plus, he/she will initiate you very easy in this area.
2. Start simple. The beginning is very hard, that is why you have to be very careful not to adventure yourself too much. Start simple, with the simplest investment idea. As you learn more, you will be able to complicate the system and risk a little more.
3. Analyse your investment knowledge and the areas you are in control of. Before investing, you have to analyse your knowledge and I am not referring here to those regarding the investment systems.
I am referring here to the areas you are passionate about and which you are involved in. Choose an area you know well before investing. Do not take a risk in those areas which you have no knowledge about.
For example: If you want to invest in the stock exchange, choose the companies you want to invest in depending on the areas you are studying. If you like medicine and you read a lot about this area, it is good to have an investment portfolio with companies in the pharmaceutical area.
4. Know very well the places where you can invest.
A very important aspect is to learn as much as possible about the places you can invest in Romania.
You can invest in the stock exchange, in forex, in real estates, in gold and so on. There are many places where you can invest your money and for this you need to have knowledge in each in order to choose the right means.
If you have a passion for real estates, it is better for you to start investing in real estates. It all depends on you.
5. Open an account of investments in stock exchange, forex or other markets. The best way to learn to invest in stock exchange is to play the stock exchange by simulation.
You can open simulation accounts on all these programs, where you can test yourself and you can simulate an investments portfolio.
At the end, you will understand how the process is working and you will be ready to make you first steps investing with your own money.
6. Start your investment. Raise money for investments. Save a little and start investing.
Without a very well established personal budget, it will be very difficult for you to start making investments. First of all, you need to keep control of your personal finances and after that you can start investing.
Educate your financial behaviour by using a personal budget that helps you plan exactly your expenses and your income and you can invest the money you save in long term income sources.
7. Set your goals! Without goals, you cannot succeed when it comes to investments. Goals are those that tell you if an investment method is good or not. They are also the ones that make you learn continuously, more and more.
Goals have to be numerical and must be set on a fixed period of time.
8. Make investments a habit. Make this activity a habit for you. Read every day at least 15 minutes about your investment areas, educate yourself more about how to invest more efficiently and constantly monitor your investments.
There are things that have to appear in your daily habit. In order to be successful in investments, you have to always think about them and grant them some time. In this area, teh phrase time = money is definitely applicable.
9. Choose your investments portfolio carefully. As I said before, your investment portfolio must include areas you are familiar with.
After choosing the areas, you have to analyse them carefully. You can see from statistics if it is profitable or not.
If you invest in the stock exchange, choose wisely the companies you want to buy shares in.
Invest safe and avoid impulsive investments. Do not rush while making investments. Those that are losing on the stock exchange are the ones that have no patience and those that do not analyse carefully the investments portfolio.
10. If you have debts, do not invest much. You do not invest because you have debts. Investments will not get you out of the debts. Moreover, they will make you invest more and forget about analysis, which is a holy thing in this area.
If you have debts, first of all try to get rid of them or, if this cannot happen, try to make an investment fund which does not affect the debts payment.
11. Be careful about inflation! Regardless of the investment, be careful about the inflation rate. The percentage you earn has to be higher than the inflation, so that you can consider you make a profit.
From this point of view, I recommend you to think twice when you want to put your money in bank deposits. Bank deposits are used rather to preserve your money, than to earn. The interest is too low and does not cover the inflation rate.
12. Always have an emergency fund for safety. You do not invest unless you have an emergency fund enough for several months.
You think about investments when you have no debts, when you have an emergency fund for exceptional situations and your entire financial system is sound, so that if you invest an amount of money it does not affect your lifestyle.
13. Long term thinking. Invest on long term. When we talk about investments, we must change our way of thinking very much.
Investments are not made on the spot. You do not invest today so you can get rich by tomorrow. We are no longer in the 1990s-2000s, when people was putting money in a game and got rich over night (yet many of them got tricked by this game).
The moment has come to invest based on multiple analyses and with long term results (at least 1 year). This is why you must be sure that the money you invest is expressly for this purpose. This is money you invest for at least 1 year.
You must make sure that you can live problem-free without that money. If you do so, you will definitely invest with pleasure and you will get involved with much interest.
14. Learn permanently! This is a basic rule! The investments market is changing very much. You have to read a lot, document yourself a lot and you have to learn to speculate. You have to be always informed about what is happening in the market and for this you have to read permanently.
Subscribe to investment blogs and websites and read your mail daily or weekly. You will see that after a while you will feel very comfortable reading a lot simply because your knowledge will be extended considerably.
15. Enjoy each successful investment. After you started, you will begin to get caught more and more by this process.
This is why I recommend you to treat this topic with maximum seriousness, but also with fun. In the end, you also have to enjoy your success.
Do not forget to buy something you wanted for a very long time or even go in a vacation using a percentage of the profit.
After all, we are investing so that we can live better and to feel financially comfortable.
This is why I recommend you to never forget to smile and play!
These being said, I wish you good luck investing and lots of money!