Investing your hard-earned money and risking loss can be a tough move to make, but if you can avoid making some rookie mistakes, it can be very rewarding. GordonBrent Pierce first suggests using the advice of a financial advisor and doing whatever you can to keep your investments as safe as possible. You can do this by using a reputable advisor, being sure to check his or her background through your state securities registry. Even if you don’t use an advisor as Gordon Brent Pierce recommends, you can take these simple precautions.
Have an Investment Plan
Getting into investing is like starting a business – you are using funds you already have in hopes of creating wealth through growth. As Gordon Brent Pierce knows, any business owner who wants to succeed must have a business plan. In fact, without one, it is impossible to secure financing for a new venture. This plan should include your starting point, where you want to go, and how exactly you will reach those goals. The “how” should take into consideration the time frame in which you want to reach your investment goals.
Go for What’s Not Hot… Yet
Many new investors make the mistake of thinking that their best chance at big returns is putting all their money into something that is extremely profitable right now. Gordon Brent Pierce explains that the time to invest in a product has long passed if it has been successful for a considerable length of time. Sure, you could still make a profit, but investors who make the most get in on the ground floor of something about to make it big. Watch the trends and save your money to put into something up and coming.
Put Multiple Eggs in Your Basket
We have all heard how dangerous it can be to put all our hopes into one thing, without a backup plan or two or three. If you are just starting in the world of investing, you may not have much money to go around into different assets. Until you have more, consider investing in two or three smaller opportunities instead of putting all your cash into one big investment. Gordon Brent Pierce will agree that doing this will not only increase your rates of return, but will also dramatically decrease the risk of losing your dreams of fortune.
Be Interested and Stay Informed
While the first tip to being a smart investor is having a financial advisor, Gordon Brent Pierce also suggests keeping yourself informed and remaining interested in how your funds are doing. You don’t want to solely rely on an advisor for all of your investment decisions, because although they have the experienced and knowledge, this is your money and your future. You may want to invest in only certain industries. Gordon Brent Pierce recommends keeping up to date with happenings in that industry by watching financial news or reading periodicals. Not doing so won’t mean the death of your investments, but you’ll feel a greater connection to your success when they do pan out and pay big.