28th July 2022
Final 4 Investor Principles
Today we will be looking at the final 4 of our 10 Principles that every investor should know when starting out on the investment path.
7) TIMING THE MARKET IS DIFFICULT, STAYING INVESTED MATTERS
i. It’s no secret that stock market timing is difficult. In fact, it is frequently stated that attempting to time the market is a fool’s errand. By remaining invested, you ensure that you are participating in the market’s long-term growth, which helps to mitigate the effects of volatility. Investing in the market allows you to capitalise on opportunities as they arise.
ii. Staying invested allows you to buy when prices are low and sell when prices are high.
8) DIVERSIFICATION WORKS: DON’T PUT ALL YOUR EGGS IN ONE BASKET
i. You can reduce your risk and increase your chances of success by spreading your money across multiple investments.
ii. Different investments will tend to even out over time, so the goal is to grow your money even if some investments underperform due to market fluctuations.
9) REVIEW YOUR PORTFOLIO
i. Reviewing your investment portfolio allows you to track your progress and ensure that your investments are performing as expected, as well as making changes to your portfolio as needed.
ii. It assists you in remaining disciplined and focused on your long-term goals.
10) IF IT SEEMS TOO GOOD TO BE TRUE, IT USUALLY WILL BE
i. Promises of high returns with little or no risk are almost always too good to be true; there are many scams out there, as well as many people looking to take advantage of unsuspecting investors.
ii. Consult with a financial professional before investing to ensure you understand the risks involved.