Don’t we all wish we could back in time? Here are 5 things I wish I could tell myself before I started investing!
1. Investing is easy – saving money is hard. You don’t need to be good at maths, a charting expert or some kind of finance genius. It’s pretty simple – don’t be scared to start. On the other hand, saving money requires discipline, sacrifice and dedication.
2. Don’t invest in penny stocks. Only a handful of people can make significant gains with trading penny stocks – a 19 year old girl with limited financial knowledge is not one of them.
3. A lot of really intelligent people don’t understand personal finance. Do your own research and take financial advice from anyone with a grain of salt. Follow your instincts and do what feels right for you. That 60 year old man telling you that investing is the same as gambling doesn’t know how the stock market works and thinks Forex is a watch brand.
4. Don’t sell your stocks just because they made a significant profit – they will mostly likely double or even triple that price. Don’t liquidate your portfolio unless you are re-balancing or in a financial emergency. Just don’t do it.
5. There’s no need to check your portfolio daily, or even weekly. You’re a long-term investor, not a day trader. It causes unnecessary anxiety and market drops can be really painful. Just watch the news and check it every month or so.