Invest In Yourself And Get Prepared For The Next Crisis
People often failed to understand that the need to invest in yourself first before starting to invest in assets or stocks. Without adequate investment education, the probability of failure can be quite high because investments always come with certain levels of risk regardless of the types of investment.
Does the below question being familiar to you?
“I have no experience in the stock market. But I like to make quick money out from the market. How can I do it?
A person with proper investment education will not just think of making quick money. He or she will need to figure out his or her own risk appetite, the amount of capital to be used and do due diligence on the investment case.
Reading value investing books is a great way to kick start the ball rolling. If you are really keen on value investing, invest in yourself first by attending any of the value investing seminars or investment programs in Singapore. Then, try to learn and model from those people who are already very successful.
If you haven’t been involved in the stock market, ask yourself how much can you afford to lose, both financially and temperamentally. After you have decided that you are willing to accept the risk of loss, and how much you are willing to risk, I would advise starting slowly.
If you have a few thousand dollars to invest, consider starting with a STI ETF first. Though STI ETF is having approximately an average returns of 5-8 per cents over a period of 4-5 years, investing in STI ETF means owning a part of the businesses of the top 30 constituents in Singapore stock market. This can reduce your investment risks by not putting all eggs in a single basket.
Give your investment some time. Don’t invest in equities with the intention to pull the money in weeks, months or even less than five years. If you have this mentality, then it is no difference like speculating stocks for quick gain. The worst luck a beginner can have is making a lot of money right away. After that happens, many decide that investments are guarantees, and they invest all they have. And they lost like the majority of the investors in stock market.
My advice to you is to invest a little that you can afford to lose. Do your own due diligence. Watch the ups and downs of the market and become comfortable with the volatility while at the same time increase your knowledge in available investment choices and risks.
Over time, we should have a diverse portfolio of stocks comprises of growth stocks, dividend stocks , bonds, ETFs and Gold to meet with our different wealth goals, objectives and risk tolerance. If you do not like to lose money due to ignorance , invest in yourself first.