A step-by-step guide for new investors

Julie Brownlee, Fsp Invest, 19 Nov. 2015

Tags: investing, new to investing, beginners guide to investing, how to start investing, investors

If you’re new to investing, it can be difficult to know where to begin.

It’s important to prepare for your investment journey, making sure you address key points along the way.

Read on to find out how you should start investing in seven steps…

Seven steps to investing success

Step 1: Know your financial position
Know exactly how you stand financially before you consider investing. You shouldn’t risk money on the stock market you need for other things over the short-term.

Step 2: Know what you want
Write down your financial goals for the short-term, medium-term and long-term with a plan of how you’re going to achieve it.

Step 3: Decide how much to invest
From steps one and two, you should now know how much you can invest on the stock market. You need R10,000 at the very minimum.

If you don’t have enough money at the moment to invest, start saving money on a monthly basis to invest with in the future.

Step 4: Open an account with a stock broker
Find a stock broker to invest with. Weigh up fees, services provided, customer care and minimum investment amount.

Step 5: Immerse yourself in the markets
You need to read up about what’s going on in the stock market and shares you’re interested in. You’ll find some great websites to read on a daily basis.

Step 6: Paper trade to start with
Before risking your money, you could paper trade to practise what you’re doing. This will give you a chance to see if your stock picking techniques are up to scratch.

Step 7: Invest
Once you’re happy with your share picking technique, you can buy your first share.

So there you have it. A step-by-step guide for new investors.

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Annette Beyers 2016-07-31 16:18:05

Yes, I would definately advise you to get a stock broker. Have a look at our list of recommended brokers here: http://howtoinvestinshares.co.za/brokers/

Motseki 2016-01-06 11:15:04

i dnt much about investing, is it possible to have stock broker with reasonable fees who will do it for me. As time goes i will try to lean and do it on my own.