5 Tips for your investing, trading, and finances.
This blog post has 5 tips and tricks to help you get a better hold on your investing and trading. If you have no idea where to start, grab my books.
1. Plan on it.
One of the major keys to success in anything is having a plan. Along with a Plan B, C, and D. When you take the time to really plan out exactly how you are going to go about your investments, you will feel more confident, and end up securing yourself more money.
By planning everything out, you are far less likely to take rash and unwise decisions. You are also less likely to close out the investments early. You should make it like a business plan, with financial projections, goals, and checklists. Invest a half hour into planning out your financial future today.
You should also be planning out each individual investment or trade.
For your own records and accountability this is absolutely key.
Not sure how? Use this.
That individual trade planner is meant to be a very basic template.
You should expand upon it greatly for your own situation.
2. Break your plan up.
Separate your plan up into smaller, easier to digest portions.
This week we will be doing it together, each day taking a step towards your eventual financial freedom.
First you need to figure out how much money you have to play with. Hopefully you have some savings, and if you don't, you need to focus on your own individual spending and saving habits before anything else.
Let's say for instance you have an extra $2,000 in a savings account collecting dust. We are going to break that up into 5 sections. one for each day of the week. This is ideally for people who have no retirement plans. If you don't have any long term investments, LISTEN UP.
Monday: Take 25% of your investment capital and put it in safe investment vehicles. Certificate of Deposit, Bonds, etc...
Tuesday: Invest 25% into Vanguard Funds, or Trending ETFS.
Wednesday: Put 25% into your few favorite companies or organizations with the longest term potential.
Thursday: Put 20% into the best Mutual Fund you can find.
Friday: Invest 5% into yourself, your business, or your education. (Courses,books, anything that could help make you make more money in the long run.)
3. Don't Look
One of the big mistakes people make is looking at their investments or trades to often. They expect things to always be green and profitable. The markets almost always look bad on the short term, but over the long term you will be fine. Aside from looking at it every once in awhile, you really shouldn't look at your stuff. you could be up 10% on a trade overall, but if you are down 3% for the day it will look really bad even though it's normal. You should expect this to happen. The markets and your accounts will never go in a straight line. If you plan on holding onto something for 30 years or more, it's silly to check it everyday. You will drive yourself crazy, or worse drive yourself out of the investments that could very well secure your golden years.
4. Contribute automatically.
If you can set up your investing so that it's automated, it will be much easier. Most people just choose not to invest their money because they are enthusiastic about long term results and don't want to part with their money This solves that because you don't have to deal with the emotional aspect of putting money at risk or aside. They'd rather just have the money now and spend it, not realizing they will be hating themselves later on. You can either open a separate bank account dedicated to saving for strictly investment accounts, or simply direct deposit into a mutual fund, hedge fund or other investment vehicle.
5. Take action today.
This is perhaps the most important tip of all considering most people just simply won't do it. If I can influence one person to take action today in either their investing in their retirement and future I will have done my job. If you simply cannot invest right now, you must invest in yourself and start learning how to trade and invest. So right now I want you to start taking action and make one smart investment today that could help you out when you will need it most. Stop talking and just start doing what you need to do, you likely know exactly what you need to do, you're just afraid, or not confident enough with your money. If that's you, grab my books and start living the life you deserve.