How to venture into your first investments

Where should you invest your money?

How to venture into your first investments

If you can make a success of it, then investing is a fantastic way to improve your future financial security, giving you enhanced control and stability. Traditionally, women have made far fewer investments than men, but that’s starting to change, and as it does so, it’s changing not just individual lives but also the way that the whole business world works.

One of the reasons why experts believe that women have hesitated to invest in the past – aside from having less control over personal finance – is that they tend to be less tolerant of risk than men. This may, however, be working in their favour, as statistically, their investments are more successful. They are also more likely to invest in female-led companies, giving female entrepreneurship a boost. This is gradually helping to close the equality gap.

With all this in mind, how can you go about making your first investments? These five tips will help you on your way.

Define your risk tolerance

Everybody is comfortable with a different level of risk. Don’t invest more than you can afford to lose, but don’t be afraid to take some chances if good opportunities present themselves. Remember that higher-risk investments generally offer bigger returns.

Explore the marketplace

Take your time getting to know the markets and following the performance of investments that interest you before you take the plunge. Use the online trading wiki to look at the different types of investment opportunities out there – from stocks and bonds to forex trading – and then focus on what you feel you understand best.

Do your research

Make the effort to find out about companies that you’re considering investing in, the people involved with them, and how they fit into their market sectors. This will improve your ability to anticipate how they will fare over time as circumstances change, and it will help you to make better decisions.

Diversify your portfolio

Spread your investments across different sectors, different countries, and – if you’re confident about doing so – different asset types. This will give you much more resilience in the event of macroeconomic factors overturning your expectations.

Find your own style

There is no single set of rules defining the best investment strategy. You don’t need to buy just because other people are buying or sell when other people sell. What really matters is finding a style that suits your individual talents and having faith in your decision-making ability.

Investing isn’t always fair – no matter how good your decisions are, it will sometimes surprise you – but most of the really bad decisions that investors make can be easily identified with a bit of common sense. Don’t get sentimental and hold on to assets when reason tells you that their value will only continue to fall. Don’t become convinced that you’ve found a system that will let you win every time, and keep risking more and more money on it. Keep a level head, be patient, and retain a clear idea of your investment goals. If you can do this, then you’ll stand a good chance of being a success.

Poppy Watt