Saturday, April 1, 2017
Three Investment Tips for First-Time Investors
Colin Robertson is a banking executive in Chicago who currently works as the Managing Director of Fixed Income at Northern Trust Global Investments. Even outside of work, Colin Robertson considers investing and keeping up with the stock market a hobby.
If you have never invested in the stock market, it can seem like a confusing, daunting challenge. These three tips will help ensure you are off to a good start.
1. Consult a Professional - Even after studying the stock market and learning the lingo, speaking to a pro can help you determine your options. Investment advisors and professionals will be able to give you in-depth information regarding the types of accounts to open and different investment methods, illuminating the benefits and drawbacks of each.
2. Leave Emotion Out of Investing - Successful long-term investments often require the ability to control your emotions and avoid acting on fear, rumors, or speculation. Company stock prices often reflect a right-now mentality. If investors are worried about the future of the business, stocks lower. If the future looks bright, share prices rise. Before investing, determine your expectations regarding return. Know at what point you will sell, either at a loss or profit, to avoid having to make that decision later when emotions are high.
3. Start Now - Whether you are a 20-year-old student working as a barista at the local coffee shop, or a highly-successful executive on a six figure salary, now is the time to start investing. Generally speaking, the longer you invest, the more money you will make. Thanks to compounding rates of return, investing $25 a month now would likely provide higher returns than waiting and investing more later in life.