How to Start Investing in Stocks: A Beginner’s Guide – ProsperUS

First of all, I’m glad that you’ve decided to take this first step on investing your money. The journey of a thousand mile begins with a single step and this first step is one of the most reliable ways to create wealth over time.

If you’re a first-time investor, you have come to the right place. Before you put your hard-earned money into investments, I want to walk you through some of the basics of how to invest your money.

There’s no one-size-fits-all solution when it comes to investing but the best way to invest your money is one that fits your personality, based on:

1) your investment style

2) your budget and cash flow as well as;

3) your expected return and risk appetite.

1) Investment Style

There are typically two investment styles that one can take, as 1) active investor or 2) passive investing.

This is most likely driven by your personal lifestyle – whether you have the time and resources to spend on research. Typically, someone who has a busy work schedule would opt for passive investment.

This is because as an active investor, it means taking time to research the investments that you are planning.

You would also have to build up and maintain the portfolio on your own. Adjustments would have to be made whenever there is a large swing in price movements.

With online brokers nowadays, this makes active investing an attractive proposition as most people can easily buy and sell in the comfort of their home.

However, a fair warning must given to those who are looking for active investing. There is a danger between knowing what you are investing in and simply following the next hot investment.

For you to be successful at active investing, you will need to invest not only your money, but 1) time, 2) research for knowledge, and 3) put in the interest.

As for passive investment, it simply involves putting your money into investment vehicles that are run by someone else.

Instead of doing the hard work on your own, someone else will take the responsibility to run it for you.

Mutual fund investing is one of the examples that people go for in passive investment. You could also hire a financial advisor or investment advisor to manage your investments.

You may find out more here: Investment for beginner

Read Full Story “How to Start Invest“

Source Link: https://www.prosperus.asia/education/how-to-start-investing/