4 THINGS EVERY NEW INVESTOR SHOULD KNOW

Are you ready to get involved in investing? If putting money to work appeals to you, then opening a small investment account could be an ideal way to test the waters. While buying and selling stocks, options, foreign currency, index funds, and commodities is not for everyone, many working adults get started and stick with the practice for many years. For those who wish to maximize their chances for success, it’s essential to follow a few basic rules of the road.

In addition to shoring up personal finances by refinancing education loans, most new investors start by researching assets like stocks, cryptocurrency, precious metals, or others. Then, they set about to identify a reputable brokerage firm. But even more important than all those initial steps are being patient, going slowly, and practicing with a demo account before putting your own capital at risk. There are tax considerations as well. Finally, if you intend to make the pursuit a full-time affair, ease into the transition from your current job toward investing as your main source of income. Regardless of how many hours per week you’ll be devoting to the practice, consider the following suggestions.

It’s essential to free up as much personal capital as possible before setting out on a new venture like investing. For those who are still making monthly payments on one or more college loans, refinancing is an effective technique that delivers excellent results. Why? Because refinancing means getting a brand-new loan agreement with the potential for much better rates, terms, and repayment periods. But the kicker is that a refi can also deliver lower monthly payments for borrowers who need extra cash flow for a new venture. By refinancing student loans with NaviRefi, borrowers can instantly generate extra funds every month by having lower loan payments.

Take the time to explore the many different assets. Chances are, you already have one or two favorites. Newcomers usually discover that forex (foreign exchange currency) and small cap stocks are worthwhile choices. The goal is to do enough research and reading to get a feel for what’s out there. Then, try choosing just one asset and specializing in that particular area. By focusing on one thing, like equity shares or forex pairs, it’s easier to gain in-depth knowledge of the subject in a short time span.

The better brokers offer free trials during which you can use their demo accounts and simulators to trade with fictitious funds. This is an excellent way to not only learn the basics of order placement and selling but also gain insight into the quality of the brokers you’re considering.

Proceed slowly after making that first trade with your own funds. Patience is the personal quality that you’ll rely on most during the early weeks and months of your trading activity. Follow a rule-based system in order to avoid letting your emotions get in the way. For at least six months, concentrate on learning, listening to financial podcasts, preserving capital, and earning a small profit. However, a good rule of thumb is to expect no income until at least a half year has passed.