This global pandemic that we are going through is playing havoc with the markets and that means one of two things for investors, some will lose big, others will win big, the question is where will you stand once all is said and done? Well many of you have been getting in touch with us to find out where you should invest or what you should invest in and sadly we just don’t want to give that kind of information out as markets are just too volatile right now. Many of the questions have come from first time investors and because of that we consulted with investment guru Fred Brisker about what first time investors need to know before they drop any cash.
Working Out Your Goals
Prior to investing a single penny it is important that you understand exactly what you are looking for from this investment. Are you looking to get rich? Are you trying to make enough money to pay your children through college? Are you just trying to make your money do some work for you or is this something which you are looking to do on a more long term basis, as a money making hobby? The fact of the matter is that the goal behind why you are investing is going to shape how you invest, so this is the best place to start.
What You Know
Something Fred has always been good at when it comes to investing is sticking to what he knows, understanding the areas that he doesn’t and making money based on knowledge. There is little point investing in a market like oil futures if you can’t tell your crude from your diesel fuel. There are so many things which may impact a market and the more invested you are in terms of knowledge, the better you will understand those market impacts and be able to react to them. Learning about investing is hard enough without also having to learn about the market in which you will be investing.
It may feel annoying that you are missing out on the chance to win big but there is a lot of value in holding your nerve and being patient whilst you are learning the ropes. Take now for example, we are in the midst of a pandemic and the hospitality industry as an example is taking a hit, now may be the best time to get involved and drop your money on some Hilton stock, but given that we have no idea what is going to happen in the next 6 months, that stock may fall even further and see you lose investment power. The best option is to ignore the possible chances, there always will be opportunities, take the time to study, d your homework, and then go in on the market with knowledge and confidence.
Any other questions you have please don’t hesitate to get in touch.