Your eight step action plan to start investing for success
Taking that first step into the realm of the stock market can be a daunting one, but it's also a very exciting one. If you're not sure where to start, read on. Here's how to start investing in eight steps…
Nothing in life is quick and easy, and that includes investing on the stock market.
What you need to do to prepare for your stock market journey
But to help you on your stock market investing quest, the following steps will get you going in the right direction, explains Gareth Stokes in Fear, Greed and the Stock Market
Complete a full analysis of your current financial position.
Create a set of specific financial goals and objectives.
As part of this personal financial plan, make sure you know how much money you’d like to invest in equities. You need a minimum of R10,000 to get started.
If you don’t have the requisite amount on hand, build up some initial trading capital by putting aside spare cash every month.
Once you’ve saved the required amount, open an account with a stockbroker.
Do plenty of research and make studying the stock pages and business newspapers one of your hobbies. I suggest the Business Day newspaper; Business Report syndicated supplement; FinWeek or Financial Mail magazine; and www.fin24.com.
Practise your skills by ‘paper’ trading until you’re comfortable.
Begin trading by buying your first share!
It’s as quick and easy as that!
Investing in the stock market should be fun and it’s up to you to make it that way.
While your ultimate goal should be to bolster your retirement funding (or to grow your wealth for future generations), you can still treat investing on the stock market as a hobby.
You’ll have an investment portfolio up and running in no time at all.