Things To Consider Before Your First Investment
All of us want to make money when we invest, but it’s important you understand your current financial situation before making a decision to invest in the market. This is true whether your investment is penny stocks or long-term blue chips. In order to determine this, you’ll need to calculate your income and expenses, adjust the following to meet your personal requirements.
House Note IRS and State Income Tax Credit cards and bank loans What it take to live daily and weekly Funding an emergency fund (very important) Cost of getting to and from work Entertainment and leisure College or Grad school debts Other finacial obligations
When we begin thinking about investing, we need to first look at our own financial situation to determine what amount we can safely invest each month. It’s always wise (that should read crucial) to invest with your surplus, and not your rent (by rent we mean any monthly expense you know will be spent).
In order to accomplish this and not invest scared money, it’s wise to first save (put aside some capital), and use that money to invest with. How much you decide to put aside is your decision, but many financial experts recommend 10% as an emergency fund, then an additional 10% for investing. Different people will have different takes on these suggestions.
while a single person may only need to take of their own investment needs, a family person needs to consider their children, spouses, and long-term goals. While we feel that investing is crucial for your financial success, this should not be done at the expense of your family, make certain they are provided for before investing.
Each of us is unique and deals with investment strategies, and life in general, differently. There are those among us who are conservative, and others who are risk takers. An honest conversation with yourself, or your spouse, will help you determine what type of investor you are, and what are your goals for the future. we are extremely bullish concerning penny stocks, believing they can be an integral part of any portfolio, offering significant possibilities for excellent ROI.
The time tested piece of investment advice is this, diversify. While penny stocks have allowed this author to obtain wealth, that doesn’t mean they are my only investment, I’m well diversified and so should you be. The market will always fluctuate, it has done so for years and I can see no reason it will change in the near future.
Always take the time to either research before you invest, or be involved with a quality expert or a newsletter that knows your niche. Often times you’ll find the best investments are those that run contrary to what your financial advisor, (usually very conservative) may advise. Just like investors, there are conservative and risky financial advisors. Take anything that is said as advice, not fact then research on your own. There is no such thing as a Wall Street crystal ball, but there are ways to obtain good information.
While we believe the majority of the big moves are predictable ( with penny stocks), there will certainly be the time you’re on board a loser. When this happens never chase the stock, take your licks, liquidate your position, and lived to invest another day. while the feeling is wonderful when you’re onboard a winner, do not let your emotions rule, take your profits, celebrate, then reinvest.