Investing can be a complicated and daunting experience for the beginner investor. There are always scams and con artists to be aware of and investment “opportunities” that you should avoid. Here are a few things you should do, and a few that you shouldn’t, as you begin your investing adventure.
Do be sure that you are ready to invest. Make certain that you’re financial situation allows for you to make investments and that you aren’t using money that should be spent elsewhere. Make certain that your credit history and current credit is in good standing.
Do take the time to do some soul searching so you can determine the level of risk you can manage without causing yourself undue stress. At the same time be sure to define your investment goals both long and short term.
Do be very cautious about any investment opportunities that come from unreliable and unexpected sources such as over the phone, in an email, or even in what may seem like a personally addressed letter. If the plea is made to invest quickly and offers quick profits, it is most likely a scam.
Do get everything you need to know in writing. If you are seriously considering an investment, be certain to ask for as much information as possible before you make a decision. Get information on the investment itself as well as the organization behind it. Make sure to read the fine print carefully before you sign on the dotted line!
Don’t fall for anything that provides hot investment tips, or inside information. Make all your investments based on truthful information from reliable sources.
Do get the opinion of a professional before making any investment choice. Talk it over with your stock broker, financial advisor or your lawyer.
Don’t make rash, hurried decisions based on a sales pitch that entices you to act quickly before others who are just waiting to get in on this golden opportunity. If it’s a legitimate investment, it will still be there after you’ve thought about it and done your research.
Do try to invest on a regular basis. By doing so, your investments will be intact to ride out the ups and downs of the market.
Don’t be afraid to let go. If an investment is no longer performing well, even if it has done wonders in the past, be prepared to let it go.
Don’t put all your eggs in one basket. It’s always best to design a well balanced portfolio of different kinds of investments.
Do plan to invest for the long term. Short term investing is not going to provide the kind of return you need for a comfortable retirement.
Don’t be complacent with your investments. Keep yourself informed on how your investments are performing, or plan regular consultations with your broker or financial advisor.
Do be ready to make change as it becomes necessary. Keep your financial goals in the forefront of your decisions and be ready to change your investments as needed to reach those goals.
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