Being new to investment is tough, and this is something which I have gone through myself in recent years. As easy as it may look from afar, investing takes far more than simply buying an asset, a great deal more in fact. Throughout the years I have made mistakes and learned so much more than I could hoped from investing, so I wanted to pass on a couple of tips for you all. I cannot, or would not pretend to give you financial advice, but these are some tips which could help to make your life easier.
Using a Capital Management Firm
Something which I would certainly file under the ‘I wish someone had told me earlier’ category, is using a capital management company. I stumbled across theback in 2019, a company which will take care of your investments for you. This proved to be the best way for me to invest in markets which I had very little knowledge about, because the management company do. I still mange some of my own investments, but the stuff that I don’t understand is being taken care of by the professionals.
Knowledge Really is Power
I have just mentioned that the asset management firm takes care of the stuff I don’t understand, and I really cannot stress enough the risks associated with investing in stuff you don’t know about. I dodged a bullet back in 2018 by pure chance, when my friends were making a tonne of cash in the crypto space. I really wanted to get involved but I just had no idea what that market was all about and so decided to keep my money in my account. I watched with frustration as my friends made profits, but then felt relieved when the market dumped, that I had made this decision. I have made far more mistakes along the way than smart choices, but this was a smart choice which actually helped to teach me a lesson too. The golden rule is having a clear understanding of everything that you are investing in.
Why Are You Investing?
I started investing cash because I had a cash boost from a redundancy package, but I had no real heading. After speaking to a financial advisor over a year later, she told me that this is what was hampering my ability to make smart investments. What she was getting at was that without a clear goal or heading for those investments, it was tougher to make decisions around buying and selling. No matter if your goal is to make a million dollars or to buy a new car, if you don’t have one, your decision-making is going to be affected.
And finally I would seriously double down on the advice which people give about diversifying those investments. It is critical that you don’t put all of your eggs in the same basket when you are investing in assets.