Investing has never been easier. With the latest advancements in technology, you are only a few clicks away from becoming an investor. However, being an investor and a profitable investor are two very different things, and it can be very hard for beginners to move in to the profitable category with little to no experience. Whether you have some extra money around, or you recently had a successful live betting session and want to use your earnings smartly, this guide can help you become a profitable investor in 2019.
When it comes to investing, it is best to start as early as possible. More accurately, as soon as you have a solid financial base in place. This is due to the fact that compound growth requires time, and the longer your money is invested, the more time it has to create more money and take advantage of that compound growth.
Even if you’re older, don’t worry, just make sure that you start investing as early as you can, and use the following few tips to become a successful investor.
Have an Emergency Fund
Due to the unpredictability of life, it is best to have an emergency fund. This will reduce the risk of having to pull money out of your investments. This ties in with our previous tip where we talked about the value of time. You have to make sure that your money can stay invested for as long as possible, and to do that, you can start an emergency fund that you can use when things aren’t going well allowing your money to stay invested.
Diversify Your Portfolio
To have a diversified portfolio means that you have money invested in multiple different stocks or bonds. This eliminates the risk of one bad investment costing you all of your money. So, if the company or even the entire industry collapses, you have plenty of other sources that are still profitable. Look to diversify with low cost, index ETFs and avoid stock picking.
Only Invest What You Can Afford to Lose
Investing is a winning and profitable game in the long term. However, in the near term, it can be quite risky and unpredictable. If you need money now, it is best to not start investing and wait to save something that you can afford to lose and then start investing. This will not only help you be more successful but will also give you peace of mind knowing that your livelihood doesn’t depend on a single stock.
Learn From Other Great Investors
Even after so many years, the very basics of investing still remain relatively unchanged, meaning that you can study the greatest investors and learn from their mistakes and success. Perhaps the best resource when it comes to this is the life and work of Warren Buffett. You can find plenty of stuff about him online, or you can get his books titled The Essays of Warren Buffett, where you can find plenty of good information about wise investing.