Wannabe a wolf? Follow these steps to investing wisely in tech
Can you afford to put your money at risk? Investing in tech, especially start-ups, is very high risk. The returns could be enormous, but losses could wipe out your savings.
Don’t bet it all on one company. Try investment funds, which spread your cash across 40 or 50 shares, diversifying your holdings across a more varied range of sectors.
The tech sector should only form a small part of your portfolio. Shares from other industries will then balance out losses if tech flounders. Add property funds and bonds, too.
Invest small and on a monthly basis. This is called “dollarcost averaging” and will help you smooth out any risk and avoid investing when a market’s reaching its peak.
Buying and selling shares too frequently is a quick way to erode the gains you’ve made by paying fees to brokers. Avoid incurring trading charges as much as possible.