How to save money making the most of your investments

Published in Pocket, March 2012 by Janine Cox

Have you ever dropped $250 on a stock that your brother suggested due to a “hunch” he experienced? 

Okay, so maybe it was more of an educated guess… but, who’s to say his educated guess is any more logical than yours?

Today or expert advises us how to save money by making the most out of our investments.

Tips to help you steer your investments on the right course

  1. Know your risk regardless of the type of investment or the amount of capital invested. Be clear as to the amount of your capital you are prepared to lose, and if you can’t sleep at night that is usually a pretty good indication that the balance isn’t right.
  2. Only select stocks for your portfolio according to the level of knowledge you have. The top 50 Australian companies by market capitalisation are best for people with the least amount of knowledge on the market. If you are holding stocks outside of that the level of knowledge required to manage your portfolio goes up exponentially.
  3. Whether or not you succeed in the market has nothing to do with your IQ. After having taught people from all walks of life, anyone can learn how to run their own portfolios if they have the determination to do it.
  4. Don’t take or share market tips from friends or family as chances are they don’t know much more about the market than you do.

Do you save money by selecting your own investment opportunities or rely on the advice of professionals?

To learn how you can gain the required knowledge and skill to ensure your success in the share market click here.

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