SIX TOP TIPS FOR FIRST-TIME INVESTORS
IQBAL GANDHAM, managing director UK of self-investment platform etoro.com, shares tips for dipping your toe in the water:
PRACTICE
IF YOU don’t quite feel ready to invest, start with a virtual account. You can play around with your portfolio and find out what works best for you.
We offer this on our site and the London Stock Exchange has a trading simulator at londonstockexchange.com/ global/portfolio/portfolio-andtrading-simulator.htm
INVEST IN WHAT YOU KNOW
ALL of the world’s best investors invest in companies they know well or are passionate about. For example, if you love tech, you may decide you want to buy stocks in Apple or Microsoft. Or, if fashion is your thing, you might consider ASOS or H&M. But do your homework on them first.
START SMALL
IT’S a common misconception
that you need a lot of money to make investing worthwhile.
If you start small but invest regularly, you’ll be surprised how quickly your pot will build up.
eToro allows you to invest from £40 and lets you buy fractional shares in a firm.
LEARN FROM THE BEST
INVESTING can be daunting, but you can put your money in the
hands of successful investors by copying them.
For example, eToro lets you copy the investment strategies of experienced and successful investors.
DIVERSITY IS CRUCIAL
DON’T put all of your eggs in one basket. Investing £500 across 10 companies is much safer than investing the same amount in just one.
THINK LONG-TERM
IF YOU’RE chopping and changing your investments all the time, then you won’t give picks a chance to achieve their potential, meaning you could miss out on good profits. Depending on the investment platform, you could also incur extra fees.