how to invest

How to Invest in eSports

June 18, 2020 By Kathryn Vercillo Leave a Comment

A desire to invest in eSports has been growing across the nation for awhile now. With many people stuck at home due to COVID-19 restrictions, that interest has boomed. After all, more and more people are home playing video games. Simultaneously, more people are seeking innovative ways to make money from home. It’s a perfect combustion – and perhaps the perfect time to learn how to invest in eSports.

What is eSports?

Competitive gaming is also called eSports. In other words, people compete at video games. This is a 21st century sporting event. If you haven’t gotten into it yourself, then you might not see the appeal. However, eSports is a growing industry that has really started to boom in the past few years. It’s predicted that the eSports will top $1 billion in 2020 for the first time, a prediction that was made even before COVID-19 caused a surge in online gaming viewership.

eSports and COVID-19

While regular sporting events are suffering during the COVID-19 pandemic, eSports are soaring. These competitive video game tournaments can be done and viewed entirely alone from home. Therefore, they are the perfect form of entertainment in the era of coronavirus.

Twitch is one of the most popular platforms for eSports competitions. It’s a platform that has gained a lot of attention in the past few months. Personally, I’ve seen quite a few performance artists suddenly take to Twitch to share their work. due to COVID-19, more people are discovering this platform. As an extension, more people are discovering eSports.

By the way, Twitch is owned by Amazon. Therefore, as Investing News points out, the you invest in Amazon, you technically invest in eSports. While this isn’t a direct way to invest in eSports, it can certainly be a start for people who are a bit risk averse. If you’re just dipping your toe into this industry, that’s where you can start.

How to Invest in eSports Companies

If you want to invest in eSports, then there are a few big names that you need to know. Many people know the names of the most popular games in eSports. For example, perhaps you have heard of Call of Duty. However, fewer people know the names of the companies behind each game. To invest in eSports, you need to invest in the stocks of the company producing the games. Therefore, you need to learn those names.

Top Companies to Invest in eSports

If you are specifically interested in certain games and the companies that produce those games then you might want to invest directly in their stocks. For example, let’s say that you do love Call of Duty. You might enjoy watching players compete at an elite level. Having some money on the game, in the form of investments rather than betting, could make it even more fun for you. Therefore, you might invest in Activision Blizzard (ATVI), which is the company that makes the game.

Top Gaming Companies in eSports

Here are the top gaming companies that you might be interested in if you want to invest in eSports:

Activision Blizzard (ATVI) not only makes Call of Duty but is also the company behind World of Warcraft, Overwatch, and several other popular games.
Electronic Arts (EA) is particularly known for sports games like Madden and FIFA.
Take-Two Interactive (TTWO) is best known for the NBA 2K games as well as Grand Theft Auto.
Tencent Holdings (TCEH.Y) is known for Fortnite, League of Legends, and Honor of Kings.

Other Top Companies in eSports

If you think that eSports is a growing trend, and you want to invest, but you don’t necessarily care about gaming itself, then you might want to think about the bigger picture. In order for gaming to work, certain things are needed. For example, NVIDIA is known for making the best computer chips for gaming. As more and more people are gaming at competitive levels, NVIDIA’s stock value rises. Therefore, you might want to invest in their stocks. NetEase and Logitech are two other popular companies for such investments.

You can even invest in companies that advertise during eSports games. For example, Ameritrade’s The Ticker Tape mentions that Intel and Coca-Cola are two companies in this arena.

Invest in eSports Through ETFs

If you don’t want to invest directly in the companies but instead want to invest more generally in eSports, then you’ll want to look into ETFs. ETFs specifically related to eSports are a new, but growing, area. The Shadow League names the following ETFs to look into further:

ESPO ETF
GAMR ETF
HERO ETF
NERD ETF by Roundhill Investments
VIDG ETF

The Shadow League points out that ETFs like this allow investors “to tap into the potential of esports and invest not just in the genre, but in the players that have a stake in the entire industry.” In other words, you’re not just investing in a specific game or tournament but rather the entire industry including hardware, product sponsorships, and other tangential aspects that go into the larger arena of eSports.

Should I Invest in eSports?

Now that you know how to invest in eSports, you might ask yourself if it’s the right thing for you to do. If you absolutely love video games and this is something that you can get passionate about then it could definitely be fun for you. However, if you’re looking at it purely from a financial perspective, you need to think about it all very carefully.

The most important thing to realize is that this is a young and growing market. Therefore, there is a lot of potential to make significant money in the years to come. You can get in on the ground floor now. Learn how to invest in eSports. Get savvy at it. Then you might see a windfall.

That said, it’s also a risky market. We don’t know where it’s going. It’s a young market. The players in it could change rapidly. Therefore, if you are risk averse when it comes to investing then you might not want to go this route right now.

How To Invest With No Commission

October 8, 2019 By Flanice Lewis Leave a Comment

Investing is now more inexpensive than ever. With the most popular firms reducing trade commissions to zero, investing is more accessible to everyone. Or it would be if everyone knew how to invest.

Choose Your Investment Firm

First, you have to pick a brokerage firm. This company will be your avenue to the stock market, and its website will process your transactions. The largest firm with no commission fees is Charles Schwab. Other commission-free firms are TD Ameritrade, Etrade, and Robinhood, with Robinhood being mobile-only. With these firms, you can buy shares of stocks, funds, and commodities. Most new users will start with stocks, exchange-traded funds, or mutual funds.

Choose a Percentage or a Whole

Any of the four would be good to buy and sell whole shares of stock. If you want to buy a percentage of a share, you can use applications such as Stash, Acorns or Stockpile. Also, there is a new option from SoFi called Stockbits. While Acorns and Stash may be mobile-only like Robinhood, they have a monthly fee. Stockpile has a cost of $0.99 per trade. Stockbits is free to use, and you can start investing with $1.00. Stockbits also offers access to financial experts.

Open an Account

Once you’ve chosen the firm or firms, you will apply for a new account. The process includes selecting your account type, funding the account, and gaining approval based on your answers on the application. They are similar to opening a bank account with additional questions related to the firm and what time of investing your plan to do. Additionally, they will ask if you are a stockbroker or if you’re related to anyone that works for the company. Also, don’t be alarmed that the firms will require your social security number. Investment firms, like banks, have to report any interest or dividend income for tax purposes.

Place Your Trade

To place a trade, you choose the stock or fund that meets your criteria, e.g., price, dividend yield, trend, etc. and complete a buy order. In most scenarios, you can click buy or sell, choose a quantity, set your desired dollar amount, and set any limits or expiration dates. You will confirm all of the details then submit your purchase order. Since the stock market fluctuates, your order may execute at a different amount than ordered. By setting limits, you can minimize the variance or cancel the order before it gets too high or low.

Invest in a Portfolio

If you purchase stock using Acorns, you won’t choose a stock or fund. You will assess your risk, and the app will choose a fund for you based on their current offerings. It will also automatically invest for you once you reach $5.00 in roundups or any figure you’ve allotted to transfer for extra investments. Essentially, you set up everything on your phone, and it rounds your purchases on connected cards up to the next dollar. This app is excellent if you want to start investing, but you don’t have a lot of money yet.

Other ways to invest in a ready-made portfolio are the Stash app, Ally Invest, SoFi Invest, and Etrade Core Portfolio. These may be great alternatives if you roll over an old 401(k) from a previous job but don’t want to pick individual stocks. Ally has a $100 minimum but no advisory fees. SoFi Invest has no fees if you have a loan with them, and you can start investing with only $1.00. Etrade has the highest minimum at $500. However, it has more educational tools if you see the value in those.

Whichever you choose, make sure you are comfortable. Read user reviews to gain insight into controls, customer service, and other important topics.

The Pros and Cons of Investing in ETFs

Stash App: Investment App Review

How to Invest in Online Gaming

20 of the Best Personal Finance Books to Add to Your Reading List

July 25, 2017 By Mary Newton 1 Comment

In a world of misguiding money advice, how do you find the right personal finance book for you? Covering everything from saving money to the consistent habits of the wealthy, these personal finance books offer a wealth of tried and true advice. Listed in no particular order, each book offers sound council rooted in experience; no frills, no tricks, just the honest truth about getting your finances in order. So, if you’re looking for a list of the best personal finance books to read in 2017, here you are.

1. The Intelligent Investor: The Definitive Book on Value Investing by Benjamin Graham

“The greatest investment advisor of the twentieth century, Benjamin Graham, taught and inspired people worldwide. Graham’s philosophy of “value investing” — which shields investors from substantial error and teaches them to develop long-term strategies — has made The Intelligent Investor the stock market bible ever since its original publication in 1949.” If investing is your game, start off with Graham’s essential work. Updated and revised to apply to modern markets, this text offers everything you need to know to make smart investment choices, and thus has earned a spot on our list.

2.The Richest Man in Babylon by George S. Clason

“Acclaimed as a modern-day classic, this celebrated bestseller offers an understanding of—and a solution to—your personal financial problems that will guide you through a lifetime. This is the book that holds the secrets to keeping your money—and making more.” Included for its classing standing, Clason’s parable-style novel is rich with all the right solutions to your financial problems.

3.Debt-Free Forever: Take Control of Your Money and Your Life by Gail Vaz-Oxlade

“Make no mistake: Getting out of debt isn’t easy. But in Debt-Free Forever, Gail gives you a clear strategy and the steps needed to implement it. So if you’re finished with excuses, overdue notices, and maxed-out credit cards, pick up this book, follow Gail’s plan, and start becoming debt-free forever.” In this remarkable book, Vaz-Oxlade makes the path to becoming debt-free look like the yellow brick road: long and difficult, but also clear, straightforward, and definitely possible. We selected Vaz-Oxlade’s book for its unique yet universally applicable problem solving.

4. The Bogleheads’ Guide to Investing by Taylor Larimore, Michael LeBoeuf, and Mel Lindauer, with a foreword by John C. Bogle

“Invest like a Boglehead, and let their grassroots investment wisdom guide you down the path of long-term wealth creation and happiness, without all the worries and fuss of stock pickers and day traders. If you face a financial crisis or problem, or simply want to know what is prudent to do with the money you save, the Bogleheads will have the answers you need to help you gain your financial footing and keep it.” In keeping with John C. Bogle’s investment advice, this witty and clever guide has all you need to know about investment. We chose this guide for its all-around, easy to follow, and thorough information on investing.

5. Pirates of Financial Freedom: A Novel by Joey Fehrman

“Through the financial advice they receive and the other characters they meet along the way, you will learn how to take control of your destiny and start achieving the thriving life of financial success you deserve!” Told through the eyes of fictional pirates, this entertaining read offers essential lessons on the most essential personal finance skills. This is the perfect book for learning those essential healthy financial habits through the experience of relatable characters.

6. The Wealthy Barber: Everyone’s Commonsense Guide to Becoming Financially Independent by David H. Chilton

“David Chilton simplifies the complex puzzles of personal finance and helps you achieve financial independence. With the help of his fictional barber, Roy, and a large dose of humor, Chilton shows you how to take control of your financial future–slowly, steadily, and with sure success.” See also: The Wealthy Barber Returns. Selected because it is one of the top-rated financial books ever, Chilton’s plan makes it possible to achieve financial independence, no matter your salary.

7. Freakonomics: A Rogue Economist Explores the Hidden Side of Everything by Steven D. Levitt

“Through forceful storytelling and wry insight, they show that economics is, at root, the study of incentives—how people get what they want or need, especially when other people want or need the same thing.” While this book does not offer twelve-step plans for financial independence or a six week get-rich-quick program, it is essential in transforming your worldview. Understanding the freakonomics mindset will allow you to make smart and beneficial financial decisions.

8. Your Money: The Missing Manual by J.D. Roth

“Guides readers with practical advice for getting — and keeping — their finances in order, covering all the money-management bases, from saving and spending to getting out of debt to investing, and planning for retirement.” Roth’s sensible advice on money management is important in any financial journey. We chose this book because it offers the most comprehensive and simple guide to an essential aspect of financial health: taking control of your money.

9. Secrets of the Millionaire Mind: Mastering the Inner Game of Wealth by T. Harv Eker

“According to T. Harv Eker, it’s simple. If you think like rich people think and do what rich people do, chances are you’ll get rich too!” Finances start with the person, and Eker’s approach to thinking like a millionaire will get you in top shape to begin your financial journey. We selected Eker’s book for the way it will transform your mindset on wealth.

Interested in learning about Personal Finance? Check out these other great articles:

10. Financial Peace Revisited by Dave Ramsey

“With practical and easy to follow methods and personal anecdotes, Financial Peace is the road map to personal control, financial security, a new, vital family dynamic, and lifetime peace.” A radio host and best-selling author, Dave Ramsey is a giant in the personal finance world. His advice for achieving financial peace comes from real experience grappling with gaining — and losing, and regaining — wealth and financial health. His financial plans are hailed for their honesty and effectiveness, which is why we had to include one of his works on our list. Ramsey’s acclaimed work focuses not only on financial peace, but also on peace in your life.

11. Think and Grow Rich: The Landmark Bestseller by Napoleon Hill

“In the updated version, Arthur R. Pell, Ph.D., a nationally known author, lecturer, and consultant in human resources management and an expert in applying Hill’s thought, deftly interweaves anecdotes of how contemporary millionaires and billionaires, such as Bill Gates, Mary Kay Ash, Dave Thomas, and Sir John Templeton, achieved their wealth.” We included this classic in motivational literature as it offers an updated version of Napoleon Hill’s 1937 work with a modern perspective on success.

12. Effortless Savings: A Money Management Guide to Saving Without Sacrifice by Richard Syrop

“Effortless Savings is the ultimate guide to saving without sacrifice. Perfect for readers of any income level or household size, it contains hundreds of ways to save money that are easy and manageable.” We chose Syrop’s guide to saving money because it offers a wealth of ways to save money without having to make sacrifices.

13. On My Own Two Feet: A Modern Girl’s Guide to Personal Finance by Manisha Thakor and Sharon Kedar

“Succinct, straightforward, and visually appealing “On My Own Two Feet” will redefine “personal finance 101” for women in their 20s and 30s.” If you want a go-to guide for personal finance, look no further. Included because it meets the need of a modern target audience, Thakor and Kedar cover the basics of personal finance in fun and simple way.

14. The Little Book of Common Sense Investing: The Only Way to Guarantee Your Fair Share of Stock Market Returns by John C. Bogle

“Filled with in-depth insights and practical advice, The Little Book of Common Sense Investing will show you how to incorporate this proven investment strategy into your portfolio. It will also change the very way you think about investing. Successful investing is not easy. (It requires discipline and patience.) But it is simple. For it’s all about common sense.” Bogle’s common sense approach to basic investing from the man himself is sure to offer the best advice out there for those looking to polish their investment game. We chose to include this book for its standing as an essential investment read, as well as for its short and sweet length.

15. Rich Bitch: A Simple 12-Step Plan for Getting Your Financial Life Together… Finally by Nicole Lapin

“In RICH BITCH, money expert and financial journalist Nicole Lapin lays out a 12-Step Plan in which she shares her experiences—mistakes and all—of getting her own finances in order. She talks to you not like a lecturer but as your friend. And even though money is typically an “off-limits” conversation, nothing is off-limits here.” Included for its spunky yet expert perspective, Lapin’s 12-step plan is offered in a fun and funky style, perfect for those seeking a bit of pizzazz in their financial advice.

16. Get a Financial Life: Personal Finance in Your Twenties and Thirties by Beth Kobliner

“From tackling taxes to boosting credit scores, Get a Financial Lifecan show those just starting out how to decrease their debt, avoid common money mistakes, and navigate the world of personal finance in today’s ever-changing landscape.” Since Finance 101 is not a class offered in high school, Kobliner’s guide to finances for young people offers the best and most thorough advice for young adults starting out in the scary world of finance. We chose this book because it offers the most comprehensive basic guide to beginning your financial journey.

17. Rich Dad, Poor Dad by Robert T. Kiyosaki

“Personal finance author and lecturer Robert T. Kiyosaki developed his unique economic perspective from two very different influences – his two fathers.” Kiyosaki’s honest observations of his and his friend’s fathers was chosen for its unique perspective on wealth and what it takes to make it financially.

18. I Will Teach You To Be Rich by Ramit Sethi

“A completely practical approach delivered with a nonjudgmental style that makes readers want to do what Sethi says, it is based around the four pillars of personal finance— banking, saving, budgeting, and investing—and the wealth-building ideas of personal entrepreneurship.” Perfect for young adults seeking structure, Sethi’s 6-week financial plan will have you starting on the right foot.

19. Money: Master The Game: 7 Simple Steps to Financial Freedom by Anthony Robbins

“Based on extensive research and one-on-one interviews with more than 50 of the most legendary financial experts in the world – from Carl Icahn and Warren Buffett, to Ray Dalio and Steve Forbes – Tony Robbins has created a simple 7-step blueprint that anyone can use for financial freedom.” Robbins’ guide follows advice of financial greats and was included for its merit as a well-rounded first read for anyone looking to learn the ins and outs of the financial game.

20. The Automatic Millionaire: A Powerful One-Step Plan to Live and Finish Rich by David Bach

“David Bach gives you a totally realistic system, based on timeless principles, with everything you need to know, including phone numbers and websites, so you can put the secret to becoming an Automatic Millionaire in place from the comfort of your own home.” Centered around an anecdote about an average American couple, Bach’s insights into financial health will change your world. We selected this book for its comprehensive information on how to make modern technology work for you.

Personal finance books offer a wide range of advice. While these twenty personal finance books cover a range of topics and financial situations, one thing remains true: their advice is the best of the best. These authors have proved their worth in the financial game, and now they are passing that wisdom on to readers like you. With all these topics out there, you are sure to find the right one for you! Have you read any great personal finance literature? Let us know in the comments.

Photo: Christopher

How to Get Started Investing

July 11, 2016 By Spencer Mecham 2 Comments

Bankrate recently came out with some shocking numbers about finance and the stock market. They had run multiple surveys and discovered that more than 50 percent of Americans don’t own a single penny in stocks. The report came out right in the middle of one of the biggest stock market rallies in US history, with the S&P 500 doubling in value in just five years.

This means that over half of the American people missed out on the rally and gained nothing out of a period of incredible economic prosperity and growth. Media outlets often report on the rich getting richer. What they do not often report on is how they do it or that a lot of opportunities are similarly available to every American citizen.

I read the news and saw the results of the survey when the data was released. The primary reasons for people saying they did not invest was lack of funds and lack of financial knowledge. Lack of funds is no longer a valid excuse with apps like Acorns allowing anyone with smartphone to invest as little as $20 a month in a diversified portfolio.

With that being said, lack of knowledge becomes the best excuse, though with online courses taking off this year and ebooks already a huge market, this excuse no longer holds any sway.

This poll inspired me to learn how to invest. Knowing someone with no knowledge of the stock market could have doubled their money by simply investing in the most well known index made me realize what I had been missing out on. It was then that I decided I was going to take the necessary steps to begin investing. Here was my process:

Step One: Read About Investing

I started with books. A lot of people hate to read. Unfortunately, data shows that successful people tend to read more than others. Here is a list of all the technical analysis books that I read in the first few months of investing. I found that I actually loved learning in-depth analysis techniques on charts and it made sense to me that there would be patterns in a stock’s price action. After reading the books, I felt like I had a lot of knowledge about the stock market and price action, but had no idea how to apply it.

Step Two: Take Online Investing Courses

Next I looked into stock market courses. There was tons of courses online, making it incredibly hard to choose. I ended up using Udemy, a discount courses website where you can learn and screen share with people in any industry. I am glad that I read books before I started doing the courses. They teach a lot of the know-how and how to use platforms, but most of them that I took do not offer in-depth study and analysis of price patterns, an integral part of trading stocks.

At this point I felt that I understood price action, I understood how to go about buying and sell stocks, and had a few strategies under my belt.

Step Three: Research the Companies

Next I started looking into companies that were in my area and were publicly traded. A lot of investors recommended investing in companies that were close to you, that you knew of, and believed in.

I ended up choosing Vivint Solar, a local company that had recently had an IPO and had seen dramatic price decreases after the IPO. I knew the company, and many employees that worked in their sales department. They were killing it in sales I knew. I also had recently completed a project on the solar market and felt I understood it well enough to understand business models and growth potential.

I ended up making a good amount of money on my first trade. I don’t believe this is the case on a lot of beginning trades. I believe it came down to being very careful and spending a long time researching.

Since then I have learned a lot. I learned to diversify and not put all my eggs in one basket. I learned to hedge my investments and stop myself from ever losing excessive amounts of money.

Everything I learned was on the side, 30 minutes here, an hour there, a podcast on the way to work, reading a book on a Sunday afternoon. The point is that anyone can do this. The stock market is not an impossible money machine for the rich and successful, it is a way for every American to take part in times of economic prosperity. Don’t let fear of the unknown keep you from taking part in America’s successes and growth.

Do you have an investment success story? Share it with us.

Photo: Flickr: Chris Potter

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Main Mistakes to Avoid When Investing

June 6, 2016 By Nick James 1 Comment

Making your account balance grow is not the easiest task. Most of us struggle to save up and, once we can actually can accumulate some funds, the main question that arises is rather simple – what to do with all of the money? There are tons of books on investing made till date, and while some of those can be useful to form a general understanding, it is nearly impossible to name the one that is applicable to the modern world. I am not going to advise you on how to invest. Today we are going to take a look at the main mistakes to avoid when investing.

Avoid the unknown

You may often hear about a great investment idea from one of your friends or colleagues. This may actually be a trigger for many people to invest. Well, hold your horses. The main idea about investing is that you should have crystal clear idea about the place that you are going to invest. If you don’t know the ins and outs of the industry – save your money.

If, however, you do feel that such sectors as Fintech are booming, and you want to invest into one of the companies from this sector – do your homework first. Spend a week or two examining the industry, key players, major causes for the stock price change and so on. After the unknown became known, you may invest.

Don’t get on the hook

A lot of companies often try to lure you into using their services or purchasing their products by offering various “limited-time offers” and various offers. The investing sector is not an exception too! This is especially true when it comes to online trading.

Even though some of the online trading brokers can be used for an investment, usually people end up losing most or all of their funds. The reason here is quite simple. Online trading is a high risk and, most probably, you do not have enough knowledge to actually generate the profits from financial markets.

Having said this, you will often see quite a few flashy ads that promise you a certain deposit bonus when you open an account with a brokerage. Most of those offers are scam. To be sure you can check such websites as forexbonuslab.com to verify whether the offer is legitimate or not.

In any case, unless you have good knowledge of financial market – stay away from financial trading. Especially from binary options.

Differentiate purchases from investments

Lack of knowledge in investments often makes people think that they invest, while in reality they simple spend the money. The idea behind investment is to generate additional funds with the help of your already earned capital.

When it comes to, for example, real-estate, many people think that they are investing when purchasing their first flat. I wouldn’t call it an investment as, firstly, the asset may deteriorate in its value. Secondly, your first apartment (provided that you live in it) will not generate any income, it will rather contribute to the cost reduction.

There are quite a few cases when people invest in the new cars, tech gadgets and other items they want to acquire for the sake of pleasure. Don’t confuse investments with purchases.

The bottom line

If someone tells you that investing is easy – don’t believe. Investing funds is, in fact easy. But successful investing is not easy at all. Never go for the sectors which you don’t know. If some niche attracts you, make sure to perform a throughout research before you commit your funds into it. Do not get hooked on gambling, trading or anything else just because there was an attractive promotion in place. And finally, investing is earning money with your money, it is not buying things for your own pleasure.

Photo: Flickr: Efloor Trade

Questions to Ask Yourself Before Investing

May 17, 2016 By Amanda Blankenship 1 Comment

When it comes to investing, everyone has an opinion. People can take guesses as to what stock is going to take off, which company will outperform the others and where you should place your money to do well. It can be confusing.

While there is no surefire way to approach the stock market, there are a few questions you should be asking yourself before you invest money anywhere. What investments will be good for your personal goals? Which investments will show a nice return?

I found an interesting article on Mom and Dad Money about what you should be looking for when making investments. If you ask yourself the following questions before placing your money in the stock market, they may help you make better decisions when it comes to choosing what to invest in.

Do you understand?

A stock market decision could sound like the most attractive option, but if you don’t understand the decision you are making, it won’t make a difference. If the person explaining your stock options to you can’t explain it in a way that you can understand, don’t invest. Understanding what your investment is and what it may do is key to sticking it out through good and bad, which is the hardest part of investing. Without a good understanding of your investment, you may be more likely to bail at the first sign of trouble (and that could cost you a pretty penny).

Does it fit your plan?

Set a personal goal for your investments. Once you’ve put your personal investment plan into action, you will know what you should invest in. Bloggers at Mom and Dad Money, LLC compare this decision to food. “Imagine making a meal by throwing all your favorite foods into one big pot…. adding them together would probably be pretty gross.” The same goes for investing. You don’t throw together a bunch of great investments, you pick investments that will work well together. For instance, if you have some higher-returning investments in your account, they are more likely to have down moments. Your more conservative investments in your portfolio will even out the down time. This will provide a lower return in the long run, but it will provide balance (if that is what you are seeking). Just make sure your investments fit your overall plan.

Investing takes time, do you have it?

Warren Buffett once said, “If you aren’t willing to own a stock for 10 years, don’t even think about owning it for 10 minutes.” With the mass amount of information about the stock market available, it is easy to want to make short-term investments. Investors who succeed in the stock market are investors that put their money into a company or stock that they want to hold forever.

Have you done your research?

Making an investment is a big decision. You will want to do plenty of research prior to making a decision. What is the company’s track record? What kind of data do they have to back up their findings? If you talk to someone and they simply talk about projections and back-tested returns, run! These are predictions and guesses as to how the company or stock will do in the future, they are not for-sure. Invest in something that has a good track record and not just predictions.

Do you understand the risk?

There is an inherent risk when investing. For instance, if you place your money with one company, the company could go bankrupt and you could lose every cent you invested. You can place your money in a diversified portfolio, but you will likely have a smaller return. However, when it comes to deciding which company or stock to place your money, always choose the option with the smaller downside. Again, this will all depend on your personal investment goals.

Are you planning ahead?

If you are looking at investing, you are likely planning ahead for something. However, you have to think ahead in terms of the stock market. Ask yourself if the investment will be easy to get out of if you need to pull your money out. The easier it is to get out of, the less overall risk there is. Also, question whether or not you need to open the new investment. Is your stock portfolio fine the way it is, considering your personal goals?

Bottom line when it comes to investing is to do your homework and make sure your personal needs are being met. Happy investing!

Photo: Flickr: GotCredit