I have thought about investing many times. I never felt comfortable or ready to make a decision to pull the trigger; in other words, I was unable to make the decision to make a purchase. Why did I felt that way? Because I was unable to understand the wealth of information available. Or, I did not feel comfortable to make a purchase based on my understanding of the information I have reviewed.
Investing is not scary or risky if you understand the information you are presented with. There will be losses, there will be gains, you can continue to invest as long as you have capital. Your greatest capital of all is yourself.
Recently, I revisited some of the online tools I tried maybe a decade ago when I was considering about investing my own money. At that time, prior to using those free online tools, I studied, I read and then I employed strategies I read about. A decade ago, I did not understand anything I put into my lists or the strategies I read about.
Now, a decade older, I am smarter and wiser. Investing strategies have not change much while the tools developed and available to aid you have gone through some minor upgrades and changes. These change may be minor but it made my work more efficient and smooth. I already knew the type of investments I wanted a decade ago and I am now ready to shop. As in I have a modest liquid capital and a more mature mindset. With these two things in hands, I am now a serious beginner investor! So, here is my strategy:
1. Ensure you have a cash flow. This could be a job you dislike or dividends
2. Read some articles about different types of investments to choose what investment makes sense to you.
3. Narrow down your articles to find the experts who invest in the type investments that is comfortable for you.
4. From the articles that those "experts" write, you will be able to find some stocks that may resonate with you. This is where you start placing potential investments on your list.
5. Put in monitoring mechanism. Monitoring quarterly would make sense from an accounting point of view.
6. Don't waste too much time on funny news. They may be interesting and fun to look at and research into but for every interesting news you venture into, you are missing time to look for news for sound investments that are harder to identify and also require your attention and support!
This quarter, I will be focusing on High Dividend Yield Stocks. This type of stock is less volatile because the dividends shareholders receive cushion the fluctuation in prices. Just remember, whatever you hold, you already own. If the company you invest in continue to exists and it has a history of paying dividends, it should continue to do so. Unless if some major changes happen. Major changes can include an expansion, an acquisition of another business, a finite cessation of a relationship with an important person, or a decision to retire.
You need to monitor your investment to know if you want to continue to hold on to an investment. An investment that once was sound, secure and reliable may not always remain that way. For example, let say, you bought a stock five years ago and the market price today is exactly the same. You made 0% gain in five years. If that stock pay dividend while you held on to it then at least you made some gain from the dividends distributed to you. Hopefully, the dividend it paid is better than a high-interest savings account and is enough to cover the cost of each trade. Remember, you have to pay money each time you place an order to buy or sell.
Hopefully, by the end of the year, I will be able to find my own High Dividend Yield Stocks.
I hope the above was helpful. Good luck with your investments this year. Protect those nest eggs!
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