How to start investing

Yes, it is as simple as it sounds. You cannot make money if you do not start your investments, and as everywhere a good beginning can help you accelerate further than doing the things in the wrong order.

At DoItInvest.com, we often asked ourselves what is the difference between an ordinary investor, who has several random investments with poor returns (as over 80% of the Americans look like), and an orderly investor. here’s what we found out:

 

a)      Start early

Most of the successful investors start very early, in their ‘20’s. Never ignore the power of compounding, which is the accumulation of the interest or yields over your investment base over time. For example, 1 USD invested in the stock market in the ’60’s would have brought you today several thousands of dollars, much more than the average inflation rate.

Of course, if you are older the same principle applies. Don’t worry, don’t delay – just do it! Start investing!

 

b)      Start with a small amount

Many people have the preconception that investing requires vast sums of money, of whom usually nobody can dispose of. This is wrong. You can start a meaningful investing activity with as little as 10,000 USD – actually why don’t you try our investment quiz here to get your thoughts started?

 

c)      Determine your investor profile

Usually this is associated with your risk appetite. The more risk you are willing to take on, the more returns or losses you can make. The important thing to be applied here is the “casino rule” – NEVER invest more than you can afford to loose, so set up a limit for your investments amounts, especially for the riskier ones.

 

These 3 easy tips look simple, but most of the investors do not apply them. Give it a little thought and then start doing it – there is no better substitute for it!

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