By Asante Isaac
Investing in itself comes with a lot of confusion concerning the terms involve. The truth can be attested to when you go to any stock exchange floor you could hear several words like limit, odd lot, round lot, straddles, call and put options etc. These terms get new investors confuse and they easily get scared to start going to the stock market. These confusions do not end at the technical level but do migrate to personal level. Here are some of them;
#1 Should I hire a financial planner or start alone: Those starting out in investing for the first time are always at the cross road as to which way to go but the fact is your decision is paramount in your quest to invest in anything. Those of us who have done enough research and are sure of the dynamics of the market can start alone by engaging in DIY syndrome. On the contrarily, if you knowledge about the market is very scanty do not bother doing it yourself but seek for a qualified financial planner. It has been advised that always we should look for those who have at least three years of experience as Financial Planner.
In addition, make sure appropriate body that has accreditation from government institution certifies them. The reason why I am saying this is that these days many people claim they are expert in giving advice, which might not be true.
#2 You need money to make money: Most people never start investing because they do not have ‘enough money’ to invest. Again, they think investing on the stock exchange is for the rich. Unfortunately, it is not so, all you need is good temperament and the courage to start small by saving few money every month. You can start with a dollar a day and at the end of the month, it will be $30, which could buy a stock. When this habit continues for few years, you will realize that your investment portfolio will be growing.
#3 What kind of investment best suit me: The choice of stocks or any investment into your portfolio is not an easy thing to new investors. This choice could be done if you have the patience to research and being able to commensurate it with your beliefs. There are stocks that will not be best for you due to your religious affiliation and your age.
The investments that have stand the test of time falls in these industries- food, retailing, and finance. The selection of stocks in these industries requires more research into each company. The key here is to look for either growth stock or value stock. Expert says new investors could start with few companies in an industry and grow the number, as they become experience.
#4When should I start investing: People may advice you to start anytime. The fact is anytime means no time. Whenever you get the idea to invest start right away to save your greatest asset called Time. Time is a great allied if you ignore it, it play against you. There is no clear age to start investing but SEC requires you to be 18 and above. The only time to start investing is now and only now; do not say tomorrow because there is no tomorrow in this world. This habit if implement well will help you in achieving your goal early.
In the bottom line, confusion is normal but doing nothing to it makes it bad thing. You being confused means you need to do more in order to clear those doubt. I wish you well in your journey to financial freedom.