Last year, when Shark Tank judge and chairman of O’Shares ETF Investments Kevin O’Leary launched Beanstox, a fintech app, he only had one thing in mind: help his 24-old daughter – and other young investors – get into the investment game with as little as $2.
O’Leary, like many other seasoned investors, has often talked about how difficult it is for newbies to get into investing, a fact that is further complicated by the tons of new investment products that have hit the market with advances in fintech.
But getting into the game is just the tip of the iceberg. Making money is a totally different story. For instance, while the US stock market gives up to 11 percent in profit over time, how do you determine which stocks you should actually go with? Do you go with real estate, gold, or even a savings account at your local bank?
Blind investment and investment decisions driven by euphoria have seen novice investors lose tons of cash on various investment instruments, a trend that’s become especially popular with cryptocurrencies.
So if you’re looking to make some cash out of your hard-earned cash, here are a few tips and resources to help you become a better investor.
Learn from Expert Traders
Seek out personal finance advisors, stock brokers, and investment advisors and ask as many questions as you may have. Experts such as O’Leary and Warren Buffet are aware that the general public normally has low investment IQ and are more than willing to share their expertise via specific platforms.
As you work on collecting as much information as you can from these financial experts, also consider attending financial conferences, workshops and seminars. Some investment firms often hold free workshops and conferences which can go a long way in helping boost your financial IQ and increase your confidence in your investment decisions.
Take a Beginners Investors Course
If you have a few coins to spare, as you should, courses such the Beginners Investment Course on Investing101.net can be quite helpful. You won’t break your bank with many of these courses, which is a steal considering the value that you’ll draw from them.
If you are quite new to the world of business, you may need to invest in a more general business course as well. Such courses will help strengthen other elements of your investing mindset and will go a long way in helping you become a better investor. For instance, getting a good CPA certification could help an investor grasp and understand different aspects of accounting in the investment world. So, if you ever feel like an accounting certification is for you, check out some of the top CPA prep courses online and take one that fits your needs and budget.
Stock Market Advisory Services and Newsletters
Get on the mailing list of top traders and also read up some solid stock research. Pick some great stocks and start putting together your portfolio. Do your due diligence and pick a reputable advisory service and stock market newsletter while making sure not to restrict yourself to the popular ones only, like Buffet’s letters or any of the popular advisors.
One service that has been doing quite well for some time is the Motley Fool Stock Advisor. They are pure genius when it comes to picking stocks and only cost $19, which is totally worth it considering the huge gains that are often seen by some of the stocks they pick.
Join an investment club
Investment clubs are among the most underutilized resources for budding investors.
An investment club lets you socialize, interact and learn with others who have investment goals that are similar to yours. Investment clubs will also do investments as a group, which helps reduce risk for risk-averse investors while helping you boost your investment IQ in the process.
To find one of these, search the internet for those in your area. You can also contact local business associations and find out from them.
Bottom Line
Making smart investment decisions is not automatic for a novice investor. It takes some time and effort to get smart with your investment money. However, if you surround yourself with the right people and acquire the right tools, possibilities in the investment scene are endless.
Read Next
