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What are the 5 most important advises you can give to a new investor?

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Question ajoutée par Nuridin Islam Diab , Training Manager , Bbusinesss LLE
Date de publication: 2016/03/31
Mohammed Amin Petiwala
par Mohammed Amin Petiwala , Finance and Investment Advisor , Special Economic Zone Authority Duqm

1. Look for the balance between your Risk aptitude and the Risk contained in the investment. 

2. Look for 'alternate risk return' profile. Means, evaluate other opportunities from risk and reward perspective

3. Measure the expected returns in time horizon. You might be wanting to exit in one year, on the other hand, the real returns might start accruing only at later stage

4. How liquid is the investment. If you are sure of no exit prior to your investment horizon, this is not an issue - but if you think that in between exigencies can come, you need to choose the investment which offers liquidity (easy to exit)

5. Keep some scope for your gut feeling also. Numbers and Analysis are not always the final decision making tools. We have common sense and hence at the end of all analysis if you feel confident about it then only go ahead.

Vinod Jetley
par Vinod Jetley , Assistant General Manager , State Bank of India

When it comes to investing, our first instinct isn't always correct. It pays to take a methodical and measured approach when entering the market. Consider the following steps:

 

  • Think about your goals. Are you investing for retirement? Your child's education? The answer will help you develop the right strategy.
  • Start slowly. You'll feel more at ease investing over time. Build confidence before getting too aggressive.
  • Seek data from a variety of sources. Warren Buffett famously said he won't invest in a business he doesn't understand. This is great advice for new investors. Famed investor John Bogle's "Little Book of Common Sense Investing" is a useful text to read.
  • Don't get caught up in short-term results. Some studies have shown that investors do better when they pay less attention to their portfolio. This may sound illogical. Yet it's easy to let a bad day or week get the better of you. It's best to avoid being too active.
  • Avoid emotional responses. Invest with your head, not your heart.
  • Don't always defer to authority. Most advisors can't beat the market. Nor should they be trying. An advisor's job is to provide investments tailored to your goals and risk tolerance.
  • Realize that sometimes the best values are found in a bear market.
  • Never try to time the market. This is the Holy Grail of the inept investor. Timing doesn't work. It never will.
  • Minimize your costs and fees. One percent may not seem like much. Yet even small fees add up quickly. In a lower return landscape, lowering costs is essential. 
  • In that vein, consider low fee index funds and other safe, reliable options.
  • Avoid the urge to pick stocks. Instead, consider Exchange Traded Funds (ETFs). These funds can track a broad array of stocks.
  • If you must own single stocks, buy blue chip firms.
  • Start investing early. A longer timeline means more risk tolerance. You can be aggressive with more time to recover.

 

Investing in the market shouldn't be cause for concern. Technology has made the process easier. The market is also more accessible. ETFs and other products allow even the greenest investor to benefit from the wealth creating effects of the market.

 

By getting started today, you improve your odds of achieving financial independence in the shortest time possible.

 

Shamseer KM
par Shamseer KM , HR Payroll Officer , Al Darwish Engineering W.L.L

Agree with the answers of Mohammed Amin Petiwala  and Vinod Jetley

حسين محمد ياسين
par حسين محمد ياسين , Finance Manager , مؤسسة عبد الماجد محمد العمر للمقاولات العامة

agree with answer >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>

I agree with the answer Mohammed Amin

Brilliant

You have to invest cautiously

And to examine your steps in the market

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