Investing in the share market can be a very rewarding experience, resulting in increased returns and the satisfaction from taking control of your investments. Here are three important questions to ask yourself before you invest in the share market.
- What are the risks?
Risk is an inevitable part of any investment, and determining how you will cope with the possibility of loss is an important issue to address. Here are some points to consider:
- there is no guarantee that you will make a profit unless you have a provable strategy in place
- you can potentially lose your money if you do not have an effective trading system
- risk can be embraced provided your strategy manages it effectively.
- investing without knowledge is risky and harmful
There are many macroeconomic and microeconomic factors that influence market movements and it is not necessary to understand them all to be a successful investor. For new investors, a safe way to start is by using a provable investment solution such as our SPA3ETF, which can help to reduce the risk of loss by timing you out of a Bear Market or decrease in the stock market.
- Is my investment plan sound?
When it comes to managing your money in the market, it makes a lot of sense to define how you’re going to do it. An investment plan, will provide a map for where you want to go and guide you towards making the right decisions at the right time. It will help you monitor your progress, hold yourself accountable and measure your success. It will help you to be clear about your current financial situation; it will reveal your goals, outline your strategy and define the risks and the rewards.
Whether you’re just starting out or a trading veteran, a well-thought-out Investment Plan
is the vehicle you need to get to where you want to go.
Are my goals and expectations realistic?
Consider why you want to make a steady profit and what returns are achievable. Is your goal to financially support yourself after retirement? Or to save money for your children’s college funds? It is important to have a clear expectation before you begin, because that way you can assess the likelihood of your goal becoming a reality. See the performance of our trading systems to get a feel for the results achieved.
If you would like to discuss your investment objectives in more detail, one of our product consultants is just a phone call away. Contact us, we are here to help you begin your investment journey or click here for some guidance on starting out in the share market.