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How to Start Investing? – Facts We Need To Learn Or Even Relearn

Opportunities to travel getting slimmer… increasing prices each year… the idea of retirement seems to be more and more out of reach each day…

it’s getting a lot tougher to live comfortably without investing and passive income under our belt now, and it will only get tougher from here.

Fortunately, people are waking up fast to this hard truth and gradually, people around the world are now learning to invest, with everyone scrambling to look for the answer to “how to start investing?”.

After looking around the internet and doing some research, our team narrowed investing for beginners into 3 aspects; of which 2 is surprisingly often overlooked even by the most seasoned investors.

How to Start Investing Step #1

Physical Prep – Opening A Trading Account with Your Local Brokerage House

Different countries offer different brokerage houses, fees and charges which have been adjusted to the standard cost of living in the country.

All you need to do is find one that has the best reviews for your country and seek them out to open an account.

From there, you will be asked link a bank account to your brokerage account for future transactions (buy and sell) and you will be able to start investing from there..

How to Start Investing Step #2

Mental Prep – Having the Right Investor Mindset

Beliefs and mindset are terribly underrated when it comes to basic investing.

Some investors have it wrong for their entire lives and never even understood why they kept losing money in the stock market.

So, here are a few important ones that all investors need to swear by before investing money in stocks.

1. Investment is NEVER About Luck and Hope

Perhaps THE MOST DANGEROUS misconception out there about investing, a lot of investors believe that their investment returns depends on their luck, like it is lottery.

That’s why we’ve seen countless people “investing” their money in instruments they barely understand and go “whatever happens, happens”.

Contrary to popular belief, we CAN control the outcome of our investments. Like anything else, we just need a deeper understanding of the stock we want to invest in and find out their intrinsic value to eliminate any guess work or be affected by any insignificant news.

Only then can we achieve the best returns on investments.

This can be easily achieved with online tools like WealthPark, using the IV Line tool which shows you the real value of the company versus their current share price.

Intrinsic Value Calculator on WealthPark
Intrinsic Value Calculator on WealthPark

2. There Is No Need to Follow Stock Market News Closely

A steady investor should distance themselves from daily stock market news.

Watching investment news on channels like Bloomberg and CNN, we would notice that some of the words used by the newscasters are meant to invoke fear and panic among investors, which sometimes can cause logic to shut down and influence foolish decisions among investors.

That being said, it is still important to follow the current affairs and keep an eye out in case a political event or a black swan incident affects your investments in the long run.

3. Investing Is Not Just About Numbers

Numbers and figures are usually the #1 scare factor for those who are attempting to start investing. Mention “investing” to a non-investor and the first line that’ll pop up is “I’m bad at numbers”.

The truth is, while numbers do play a part in investment decisions, it should only make up about 30% of an overall investment decision. The other 70% – it should consist of other qualitative factors like the company’s business model and management. (No, your friend’s “investment tip” should NOT play a part in your investment decision)

And even when you have to look at the numbers, there exist investment tools that can easily simplify all that information and save you time and effort.

 

How to Start Investing Step #3

Technical Prep – Leveraging The Right Investing Tool

We’re not in the 1950’s anymore, and most calculations, tracking and information SHOULD now be taken care of by online investing tools, because the manual process can take up too much time and effort.

This way, you can still find good investments with high returns, minus the tedious efforts and regardless of the type of investor we may be.

For example, WealthPark’s Star Chart packages fearful financial numbers into an easy-to-understand scoring system, so you don’t have to go digging around and forcing yourself to make sense of the numbers.

Star Chart on WealthPark Makes Investing For Beginners Easier
Star Chart on WealthPark Makes Investing For Beginners Easier

One look at the Star Chart and you would already know whether a company is healthy!

One top of that, you can also easily access all historical information about a stock and record all your investment holding in one portfolio, making it your one-stop investment platform.

Now you can use your already-scarce time for something more important.

Passive income is definitely becoming more and more important as we progress due to the growing economy over the years.

The question is, are you really prepared to start investing?

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Yen Hung Chua

Yen Hung Chua

I became an advocate of money management and value investing at the age of 27 for a simple reason. Money management, investing and MOST IMPORTANTLY, emotional stability – was never something that was taught in school. We end up a bunch of workers who are taught to only work for money but not the other way around, and to treat investing like a game of chance. And it was time to change that. Being with WealthPark, not only do I have the opportunity the spread the money-consciousness further and wider, but the platform on its own, is also wickedly useful for anyone who wants to invest in stocks.

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