Investing Basics You Need to Know to Start Investing Like a Pro
Investing basics or investment 101 is an interesting topic. Investing is a strategy to earn passive income and accumulate wealth in preparation for retirement. However, people have many reservations and misconceptions about investing. Here are just some of them:
- Investing is risky. It's safer to put my money in the bank.
- Investing is only for the rich.
I don't have enough money to invest.
- Investing is difficult and confusing. It's not for those who are poor in the numbers game.
- Investing is only for those who have the entrepreneurial spirit.
If you can relate in any of these misconceptions, you need to learn investing basics, change your money mind set and take advantage of opportunities in investing.
Many people do not take action because of these fears and misconceptions. This site, diy-personalfinance.com, is just one of the many finance sites you will find on the web providing investment advice for beginners. This will provide you with a good starting point. Get started now. You will never know what is investing until you get started. Do it now and do it right.
The following articles and references could help clarify investing misconceptions, make you appreciate the value of investing and give you practical applications to get started and invest like a pro:
- How to Double Your Money Using the Rule of 72
- How to Choose Investment Vehicles: Different Levels of Investment Income
- How to Determine Your Investment Portfolio
- How to Invest in Stocks: Stock Market Investing in the Philippines Made Easy
- How to Invest in Stock Online
- Mutual Funds Investing Basics
- What Mutual Fund Companies Should You Invest
- How to Invest in an Online Business
Investing Basics: Invest to Win
- Invest like an entrepreneur. When you are an entrepreneur, you keep an eye for opportunities and grab them, you are patient and consistently follow a course and you are aware of your strengths and harness them effectively. In other words, your investment decisions should not be driven by emotions.
- Be adept with numbers. In investing, you need to be have access to market and economic trends and understand its volatility. Rex Mendoza emphasized that losing and gaining is not equalized. If you lose 10% one time and gain 10% the next time, it does not mean that you are back to 100%.
- Stick to your investment objectives. The objective of investing is not to make plenty of money but to beat inflation. In effect, if you invest to get rich quickly, investment is not for you. A clear investment objectives translates to a clear focus and strategy. Seize opportunities but always with your investment objectives in mind.
- Strive to possess an entrepreneurial mindset. An entrepreneurial mindset have the following characteristics: quick to grab opportunities, never satisfied (as opposed to never contented), gets out of comfort zone, visionary yet practical, a strategist: symphony conductor rather than a player, proactive and pays attention to details.
- Be in the right crowd. In my personal view, if you are with IMG, you are in the right crowd.
Learning some investing basics is a must to gain confidence and to get started with a wealth building plan.