Investing can sound intimidating to the novice, but it doesn’t have to be. Many of my friends (including myself) find ourselves very hesitant to begin because we feel the knowledge gap is incredibly wide and would take significant time and effort to even start. Heeding to the advice shared in my previous article, you have to start with baby steps!
The first baby step is to arm yourself with knowledge and tips. Hence, I present to you, Hive Up’s very own novice investor’s starter pack. Below is a collection of our easy-to read articles and infographics to give you a kick-start.
For starters, equip yourself with frequently used vocabulary in the world of investing such as bull and bear markets, P/E ratio, etc. Ever thought of buying stocks from companies such as Apple or McDonalds? Stocks from these well-established and financially secure companies are known as Blue Chip stocks. To find out more, read this simple infographic on 6 basic investing terms you definitely need to know.
Next up, make sure you do your homework and cover these to-dos before going any further. Make a plan. As we all know, when you fail to plan, you plan to fail. This is most crucial when it comes to investing. We’ve broken it down into 3 simple steps for you here.
An essential concept every investor must have is diversification — it’s a prudent way to minimise risk on your hard-earned capital. In general, the more diverse a portfolio is, the less it will suffer from volatility, which inherently reduces the risk you face. We do not advise going further unless you get a good grasp of this. As always, feel free to reach out to us if you do have questions!
Finally, once you feel you’re ready to brave the waters, this is the last guide for you on what to prepare for your final steps. Take all the time you need to sit on this and run through this checklist, once, twice, thrice, as many times as you need before you dive in and make your first investment.
It’s time to kick off those training wheels and venture into the real world! If you still feel unsure, take as much time as you need to re-read the above and dive deeper into the concepts. Or, drop us your contact at firstname.lastname@example.org and talk to our expert advisors who can guide you every step of the way.