Knowledge Diary Logo
   Knowledge Diary - General Knowledge Articles Website
Google
 
Fresh and Informative General Knowledge Articles
Knowledge Grows When Shared  
Knowledge Diary Home Knowledge Diary Home | Sign Up as Writer Sign Up as Writer | Knowledge Diary Glossary Glossary | Contact Us Contact Us
Home > All Categories > Money and Investment > Investment Tips
Question Title Investment Tips

The best way for you to choose your investment vehicles is to first plan out how much money you want to invest, how much you can afford to lose, how much you want to sleep, and how long you want to invest for. How do you answer all these questions? By considering the following tips.

 

1. Diversify
The expression, "don't put all your eggs in one basket" is meaningful when it comes to investing. Don't put all your money in one stock. Also, buy fixed income securities (i.e. bonds) and stocks. Don't pick only one type of investment.

2. Do Your Homework
Obtain and analyze as much information as possible before making your investment decisions. This will alert you of any problems a company may have, or what to expect from your investment.

3. Set Goals & Limits
Determine the price (high target price or low stop-loss price) at which you're willing to sell. Analyze interest rates to decide what return you want.

4. Don't Gamble With Money You Can't Afford To Lose
The less you can afford a loss, the more conservative you should be in your choice of investments.

5. Don't Be Greedy
Don't expect your broker to recommend stocks that will double in value within a few months. If you do have a stock that goes up considerably -- i.e. 50% or more -- sell.

6. Invest For The Long-Term
Company stock prices will fluctuate, sometimes unfavourably, in the short-term. Invest for the long-term, but keep your current financial needs in mind. You never know when you might need some of that money.

7. Avoid Acting On Impulse
An impulse buy, whether at the mall or on the stock market, is still an impulse buy. Stick to your plan. Don't buy a stock on a hot rumor; you'll get burned 90% of the time.

8. Go For Value
Undervalued stocks will help create the most growth in your portfolio. Look for bonds of companies that are out of favor too. They should be selling at a deep discount.

9. Tax Planning Is Important
Consider income-splitting techniques. (Ask your investment advisor).

10. Get Professional Help
If you're starting out, hire the best professional help you can afford. Professional advice will likely pay for itself within a short period of time. Once you become used to the market, do the research yourself. Later on in the game, switch to an online broker.
 
By Luis Rodrigues
Financial Correspondent - Every 2nd Sunday
Authored by: Shveta Jairath This question has been viewed 1553 times so far.
Click Here to View all the questions in Money and Investment category.
File Attachments File Attachments
There are no attachment file(s) related to this question.
How helpful was this article to you?
User Comments User Comments Add Comment
User Comment pardhir@gmail.com on Tue, Jun 19th, 2007 at 5:37 PM
Nice article ..provided one can stick to the advice. Paritosh
Related Questions Related Questions
  1. Know About Sensex
  2. How To Become Debt Free
  3. Credit Cards: Use Wisely and Enjoy
  4. How The Stock Market Works.
  5. Start Making Money With Adsense
  6. Data Entry From Home For Money
  7. Five Sure Ways to increase your adsense revenue
  8. Sign Up With A Paid Survey Website For Easy Money
  9. The best Way to avoid Credit Card Penalties
  10. Google Adsense: Positioning Your Adsense Ads
  11. Some Important Accounting Financial Terms[A-H]
  12. Some Important Accounting Financial Terms[ I - Z ]
Article Information Additional Information
Article Number: 95
Created: 2007-06-18 1:52 PM
Rating: No Rating
 
Article Options Article Options
Print Question Print this Question
Email Question Email Question to Friend
Export to MS Word Export to MS Word
Bookmark Article
del.icio.us Bookmark del.icio.us Bookmark
Reditt Bookmark Reditt Bookmark
Digg Bookmark Digg Bookmark
Subscribe to Article Subscribe to Article
 
Search Knowledge Base Search Knowledge Base
 
 

Knowledge Diary is powered by PHPKB Knowledge Base Software