what's going on you guys so I'm excited
to bring you a collaboration on my
channel again this time from Marco he
has a great channel known as white board
finance and I am just super impressed
started this channel about one month ago
and he now has over a thousand
subscribers absolutely incredible but
well-deserved Marco is a finance major
he's an entrepreneurship minor he's
owned three different rental properties
he's been investing for over 12 years
he's seen bull markets and bear markets
and today he's going to be talking to us
about what you should know before you
invest any money in 2018 and his top ten
tips for that so if you guys enjoyed
this video make sure you jump over to
his channel and subscribe be one of the
first subscribers before this guy hits
10,000 subscribers it's gonna happen
quick based on the quality of the
content that he's been posting but let's
go ahead and learn more from Marco and I
hope you guys enjoy this collaboration
hey everybody its Marco from white board
finance Ryan I wanted to thank you for
featuring me on your channel and I can't
wait to help people understand what they
need to do before they invest in 2018
this is a very valuable topic so let's
get to it
number one people need to draw a
financial roadmap and set goals they
need to take an honest look at their
entire financial situation especially if
they've if they've never made a
financial plan before the first step to
successful investing is figuring out
your goals ahead of time do you want to
pay off all your debt before you start
investing you want to save up for a
house before you start investing or
maybe do you want to do all these things
simultaneously this all comes down to
what you're comfortable with and again
it's called personal finance because
it's down to your personal situation so
number one dry financial roadmap and set
goals number two what is your risk
tolerance all investments involve some
degree of risk which I'm sure everyone
watching this channel already knows if
you intend to purchase stocks bonds
mutual funds or real estate it's
important to understand that your
investment could go down to zero and you
can lose it all
higher risk equals higher return
investing solely and low risk
investments may not keep up with
inflation and you can actually be losing
money in the law
term as opposed to high-risk investments
which could shoot up 6070 a thousand
percent but you can also lose that much
as well so it's good to have a good
balance and a good mix that way you can
hedge against one another so number two
what is your risk tolerance number three
invest only what you can afford to lose
this is kind of piggybacking off of
number two on understanding your risk
profile but this one is pretty
self-explanatory you guys do not invest
in what you cannot afford to lose it's
as simple as that if you have a family
if you have people that are dependent on
you financially you can only allocate
what you're willing to lose and
investments you should not allocate
things that are responsible for taking
care of those loved ones so again invest
only what you can afford to lose number
four have an appropriate mix of
investments so you need to figure out
what investment profile is right for you
whether it's stocks bonds real estate
cash or even cryptocurrency you need to
find the right mix to use them as a
hedge against one another
so again if cryptocurrency is
skyrocketing and your real estate
investment is tanking those two will be
balancing each other out hopefully in
the positive you can also consider
investing in something called a
lifecycle fund which is naturally more
risky as you're younger and it gets more
conservative as you get older so an
example of a lifecycle fund is say for
example a target retirement fund so you
pick a certain year in which you think
that you're going to retire let's call
it twenty fifty five or twenty sixty in
the future when you're younger this
invests in more risky growth stocks and
as you get older it becomes more
conservative in nature allocating more
of your funds towards bonds and more
conservative investments so you're not
making it as high of a return but your
money is considered to be safer in a
less risky investment so check out a
life cycle fund if you haven't done that
already number five if you do decide to
go the stock market route and invest in
equities and stocks you need to know how
much of your portfolio should be in
stocks
so a typical rule of thumb is that you
take your age and subtract it from one
hundred
10 to find the percentage of your
portfolio which should be allocated
towards individual stocks or equities in
general this can be adjusted up and down
for your appetite of risk but this is a
pretty good rule of thumb when you're
figuring out how much of your portfolio
should be in stocks alone number 6 how
many different stocks should you buy so
if you decide to go the individual stock
investing route I recommend that you
have no less than 15 different stocks
across different industries again this
is diversifying your portfolio and
hedging against one another in case some
different industries accelerating growth
or actually lose money this may not be
practical to actually have this many
individual stocks so I highly advise
that you guys look into an ETF or an
index fund if you haven't heard of that
already number seven the all-important
question how much return can you expect
in 2018 so let's talk about this nine
year bull market that we've been in for
you know a little over nine years now
people have been getting crazy returns
50% hundred percent some people are
investing in crypto and they're getting
thousands of percent you have to realize
that these results are not typical I've
been investing since I was 18 years old
and that's been for 12 years now
so I remember 2007 and 2008 where people
were losing 40 50 60 % of their
portfolio normally the market returns 9
to 12% historically so you need to
adjust your expectations going into 2018
because a lot of people keep talking
about a correction so keep that in mind
but if you're killing it in crypto if
you're killing it in certain stocks by
all means please keep making your money
and don't let me deter you number 8 only
by what you know so if I can't clearly
explain what a company does in one or
two sentences I won't invest in it I
don't want to be in over my head
investing in some crazy biotech pharmacy
company whose you know success is
hinging on a certain application or
patent or thing like that you know it's
important to only invest in businesses
that are easy for you to understand
especially while you're just starting
out you must understand that company as
if you are the CEO and if you can't give
a quick elevator
bitch about what the company does I
personally wouldn't invest in it and
that's just my philosophy number nine
watch out for red flags so these red
flags are companies that don't earn any
profits a lot of tech companies fall
into this category so those you need to
dig deeper and do more due diligence
also be cognizant of stocks who share
prices are always going down you need to
look at the three and five-year charts
for long-term growth or actually long
term losses in terms of share price
number three companies that are under
investigation so a lot of companies get
sued here and there I'm not talking
about litigious lawsuits or things like
that I'm talking about under
investigation for insider trading or
things that there are major deterrence
to the health of a company number four
companies with lots of debt so I know a
lot of companies want to grow so they
either take on debt or they start you
know reinvesting all their profits back
into the company which is fine
but you need to be cognizant of the
level of debt that each company has that
you may be interested in investing in
number five stocks with recent dividend
cuts or an unstable dividend history
this shows that the company is doing an
okay maybe even a poor job at managing
their money which means they're a
dividend is always changing going up and
down rather than consistently increasing
year over year so keep that in mind you
guys number ten rookie mistakes to avoid
so keep in mind this is for all the
beginners and the rookies out there
these are three things that I
necessarily wouldn't recommend you do
when you're just starting out and
investing avoid buying penny stocks so
this is any stock that's under five
dollars a share that's either traded on
over-the-counter which is OTC market and
it doesn't trade on a regular exchange
like Nasdaq or the New York Stock
Exchange of course there's exceptions to
every rule but as a beginner I wouldn't
recommend going this route number two is
buying stocks on rumors so you know when
you're at the rec center and you're in
the locker room you just got done taking
a shower and you overhear the old guys
in the corner talking about the next big
stock or oh my buddy works at XYZ
company and they got big things planned
for 2018 don't listen to rumors you need
to do your own due diligence
this is one of the easiest ways to fall
into the fear of missing out and feel
like you're missing out on the next big
thing but really you just need to be
able to do your own due diligence and
come up with your own thoughts you need
to be mature when it comes to investing
number three finally is using margin so
there's some valid reasons to use
borrowed money which is margin but in
this case if you're just beginning
I wouldn't dig yourself in a bigger hole
than it really needs to be you need to
learn from your profits and from your
losses and I actually think the best
teacher is sometimes getting burned in
the market however if you're using
margin that means you're leveraged which
means you're going to lose way more than
you would lose just by using your own
principle you can also make more and
make a lot but it all depends on your
appetite for risk if you're a beginner I
wouldn't recommend trading on margin to
start with and that's all I got for
everyone thank you so much for watching
those are my 10 tips for people who are
either new or who are considering
investing in 2018 those are 10 things
that you should know and just keep aware
of again those are just my opinions if
you've already been successful in the
market by all means keep doing what
you're doing
so for all the beginners out there go
over this list very quickly make sure
you're checking all those boxes and best
of luck to you investing is one of the
best things you can do for you and your
family's financial future and it's also
a good way to provide a solid base into
your older years thank you so much for
watching and I appreciate you having me
on your channel Ryan thank you
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