Warren Buffett, American business magnate, said, “I never invest in anything that I don’t understand.”
Are you planning to invest by next year? Then, you should prepare ahead before completely putting your money into an opportunity you barely know the potential. As a new investor, there are plenty of things you need to understand first. It’s not enough that you know the basic about investment. There is plenty of information you need to know first before trusting your money into something (whether for a short term or a long term investment). How much am I willing to invest? What are my goals and expectations? How much am I willing to risk to gain more afterwards? Am I ready to lose in case all things failed?
Here is a short guide to help new investors in picking the right investment opportunities, things to avoid, and how to get started ASAP:
Where should I invest?
This is the first question that usually pops up in people’s mind when confronted with the word ‘investment.’ It is true that you need to be certain with where you want to place your money. You have to believe in your investment’s capability to use your hard-earned cash in its full potential. But, next year, here are some investment opportunities you may want to consider to help your financial portfolio:
For those planning to invest in stocks next year, you are in for a good treat. There are some stocks that are predicted to have a huge growth potential in 2016 (doubling its growth rate).
1. Baidu (search giant)
2. Keryx Biopharmaceutical
3. Melco Crown (resort)
4. PTC Therapeutics (a small cap biotech)
5. Inovio Pharmaceuticals
There are other familiar and up-and coming businesses with great flight potential in the stock market. You can check out some of them by clicking here.
Are you business-minded and capable to finance your own startup? Then, you can start investing in your own company by next year. Just make sure you have everything sorted out in terms of the budget and capital amongst all. Apart from your complete business plan, you must have a clear understanding of how a startup work and the capability of your product/service to survive the volatile market. For additional assistance, most startup owners have different option to source funding for their business venture such as crowdsourcing, federal grants, joining a contest, finding an angel investor or getting a loan.
Things to avoid:
So, you’ve finally decided where you want to invest your money. The next thing you need to know is how to invest smartly. The best way to learn it is by knowing which investment decisions and moves to avoid. Here is a list of things to avoid to ensure you get the most out of your investment portfolio:
1. Unrealistic goals. The initial step you need to make as an investor is to create your investment goals and expectations. In here, you will list down how much you are willing to risk, what you perceive to be your greatest returns, and where you should invest next (if ever). However, it seems that most Millennials have unrealistic expectations in investment, especially with their retirement plan.
2. Focus on now than later. It’s normal to win and lose. Investors need to cut loses and focus on the long-term potential of their portfolio. Only make decisions when you have completely let the information sink in. Sometimes the best action during a loss is no action at all.
3. No clear exit plan. Nothing always goes as planned. Thus, at one point, you need to decide when to call it quits. By then, you must have a clear exit plan. Be prepared to lose as it can save you more money than to gamble it further.
We hope this can help you get started in investing the earliest, so you can benefit out of it the soonest. If you have other tips and ideas you want to share to our readers, feel free to leave a comment beloe.