Tip of the Day: Ways to Invest
These tips are not shortcuts, get rich quick schemes or cannot miss investment opportunities, and to execute them successfully, each step will require an investment of your time, building your investment knowledge while testing your true desire to invest.
Start with a Plan – If you do not know where you are going, you might wind up someplace else, so having a clear idea of where you are and where you want to go financially is an important first step.
Your plan should address how you expect to achieve your goals as well as contingency plans, such as carrying adequate insurance, for unforeseeable events that can derail the best laid plans.
Focus on Philosophy – Before thinking about how to allocate your assets or researching individual investments, take time to develop and articulate your personal investment philosophy.
These core beliefs about investing will guide your approach and help keep you on course over time.
Buy high, sell low is obviously not a viable philosophy but one far too many investors unwittingly follow, so the best advice for developing an investment philosophy is to read and listen to the philosophies of successful investors.
Develop a Disciplined Investment Process – It will address how you will build and maintain your investment portfolio. From the allocation of your assets to its implementation and monitoring, your investment process will define how you go about investing with the discipline of a professional.