I made a 100% profit from less than a year of investing, here is what I learnt
--
Start small, start somewhere
I was putting my finances together 2 days ago, and I realised how much I have gained in my first year of investing. Granted that it was a good year for investment, a 100% return sounds good regardless.
Over the course of last year, I spoke to many investors and non-investors on this topic because I was learning about it, and I was just so curious to hear their thoughts on the decisions they made. Be it, to invest or not, their sentiments regarding the market, and their view towards money.
Looking back on the things that I did (or didn’t), I consolidated a list of key takeaways for people who are starting on their investment journey.
#1. Learning that inaction hurts
I grew up in an environment where the adults believed that the safest place to store their money is in the banks. What they didn’t realise back then was that in doing so, the money quickly gets devalued over the years and their hard-earned cash is worth a lot lesser today than before.
In my conversions, I realise the common reasons for not investing are usually vague and often attributed to laziness. However, when probed further, reasons such as fear of uncertainty and/or the fear of loss starts to surface.
From the way I view it, the fear of uncertainty is something that can be easily tackled using the resources that we have on the web. The fear of loss is understandable, yet they often do not realise that they are already losing financially with inaction.
To do: Find out your source of inaction and address it. If the fear of loss paralyses you as it did for many, then start small. Start with $100 or an amount that is dispensable enough to you. It’s often the first step that’s the hardest to take.
#2. Learning to tackle uncertainty
The idea of investing for a non-financially savvy person sounds daunting because of the multitude of complicated terminologies used, the non-beginner friendly trading platform UI, and of course, the countless stocks available in the market.
To do: To regain a sense of control, start by writing down what you don’t know or the questions you have. It helps to be as specific as possible. It can include questions as basic as how to set up an account for investment/trading, what to invest in, and when to enter the market. This list provides you with actionable guidance on the topics to research on.
#3. Learning to have the base setup first
Use the time that you have to your advantage. Setting up of account takes time. Applying and having the account approved takes time. The learning of how to navigate the platform takes time.
Many do not realise the amount of paperwork and approval duration required to set up an account. Before I made my first investment, I had been monitoring the market for quite a while. One day, the market dipped slightly, and I thought it was the perfect time to buy. I tried to sign up for an account and came to realise that it takes 1 to 2 weeks for the paperwork to go through.
Often the market moves really quickly. You want to be ready when the time comes.
To do: Setup your account early. You never know what kind of issues you may face and the time required to troubleshoot it. For stocks in particular, set up an account which allows you to trade in all markets. Subsequently, perform a minimal trade to familiarise yourself with the platform and also to ensure that your setup is complete and ready for use.
These were some of the keys takeaways that I had. I am glad I took the first step, and I hope you do too. Cheers!
