You probably are in that phase where you zealously need to invest. It always seems to be a rush against time to get an investment plan right. While funding is the most reasonable thing to do, getting the right investment can be difficult.

We have investment tips for Singaporeans who are new investors. The tips do not require huge capital to start or a vast amount of knowledge on markets.  The tips are practical and offer insight on investing.

It is essential to note that to succeed, you need to invest over time since investment is not a scheme to get rich. Here are the tips that will kick start you in making profitable investments.

1. Have your finances in order

5 golden rules of financial planning - The Economic Times
Photo credit: The Economic Times

Before investing in the stock market, you need to have your funds in order. You need to have your expenses in place so that you save. With enough savings on a daily or weekly basis, you will have enough to invest.  With a steady financial plan, your road to investment is clear.

2. Open a brokerage account

Step-By-Step Guide: Opening A CDP And Stock Trading/ Brokerage Account In  Singapore
Photo credit: SeedlyBlog

With enough savings in place, you need to open a brokerage account in Singapore markets. You’ll first require a central depository account to trade shares of different firms. The fees charged for brokerage accounts are around s$25. It is essential to pick the right broker to help in your investment journey.

3. Choose an investment style that suits you

investment tips for dummies

There are different investment models as illustrated below:

  • Value growth investment is ideal for investors with less capital and wish to grow it over time.
  • Income investing is where one invests in companies that make huge profits so that one makes regular profits. These companies have a considerable growth rate and pay dividends from substantial capital inflows.
  • Index investing.  You invest low-cost index funds and get a fixed return. This investment style is less costly in terms of transaction costs and management fees.
  • Deep value investing. You will not lose money since the company is undervalued.

Alternatively, you can also hire a financial advisor who helps you to build a roadmap to achieve your financial objectives. Getting educated about your retirement and wealth-management options is a necessary part of planning for your financial future.

4. Know your investment personality and learn from your mistakes

investment tips for dummies

As a new investor, you will need to take fewer risks to avoid losses. It is crucial to build your trading portfolio over time. However, if you can take a high risk, chances are that you may have a considerable profit. On the other hand, if you are wary of losing cash, you can invest passively. It is paramount to look at your reason of investment. Retirement purposes, need sound and continuous investment.

If you make big investment mistakes, always learn from them. As Warren Buffet advises, always note those mistakes so that you do not have a repeat of the same.

5. Watch the stock market

investment tips for dummies

You must watch the stocks to know when to buy shares. Always have the following investment tips when buying stocks.

  • Buy stocks when companies are experiencing problems temporarily. You will reap the profits once the issues are solved.
  • Always buy when the companies’ profits are low in the short term.
  • Invest when there is an economic meltdown that affects many companies as a whole.  When the markets stabilize in the long run, you are bound to profit.

6. Choose a competent financial advisor

investment tips for dummies

Once you have decided where to invest, seek to benefit from an excellent financial advisor’s expertise. A financial planner will help you benefit from your investment.

A good planner offers practical advice on investments and listens to your market concerns. They will also look closely at your financial objectives and work towards achieving them.

Where to find the best financial advisors in Singapore? Check out JS Advisory as they clinched the top spot in our best financial advisors who excels in high quality, trustworthy, and independent financial advice.

You can rest assured that these seasoned advisors are thus adept at providing highly relevant information and recommending appropriate services or products to help clients achieve their financial goals.

7. Don’t buy products you don’t understand

investment tips for dummies

An investment tip to always know is that you should not invest in stocks or bonds you don’t understand.  Always invest in investments whose working models are familiar.

If the working of the stocks is about future predictions, avoid such investments. These investments are hard to predict, and you can get heavy losses.

Avoid marketing gimmicks that offer handsome returns from low investments. Always read the numbers and know the expenses and hidden charges. Taking time to understand financing is the best investment strategy.

8. Invest Within a Certain Period

investment tips for dummies

After choosing where to invest your portfolio and deciding on the risk to take, have a time frame for your investment.

If you need fixed income within a short time, work at stocks that give weekly or monthly returns. If you are working on retirement plans, you can invest in passive income with a regular evaluation to determine your progress.

9. Diversify Your investment

investment tips for dummies

As a dummy in investment, an investment tip to have is always to diversify your investment. You should not concentrate on one significant investment with the hope that you will reap big. On the other hand, do not focus on many investments since the returns can be dismal.

Your financial investor ensures your investment portfolio is diversified. He also models investment models that are appropriate in the long term.

10. Exit in Time

investment tips for dummies

Timing is an essential factor in trading.  It would help if you did not sell your stocks too soon to cash in on profits or overstay long-term investments that are making losses.

You need to evaluate your market performance from time to time to know your progress.

An excellent financial investor will always offer you market conditions. He will point at available opportunities and how you can allocate funds. Your investor’s insight will still help meet your financial targets in the short or long run.

BONUS POST: Set realistic and achievable goals to set yourself up for success with GoalKeepin

GoalKeepin is a good mobile application to help keep your financial goals in check. The mobile application assists participants in building a sense of accomplishment that comes with attractive rewards. With your new goals for investment in mind, you can strategically utilise the app to plan your steps by participating in their challenges such as:

  • Keep a household account
  • Watch a financial consulting video
  • Summarise economic news articles

Aside from finance challenges, GoalKeepin covers a total of eight unique categories ranging from fitness and wellness to relationship management. It currently has prevailing activities such as stop using a cellphone after midnight, planning daily meals, cooking at home, calling parents twice a week, getting at least eight hours of sleep, and finishing a book weekly as an all-in-one platform to help users realise the various goals they have in life. The only way to achieve goals is to start off with something manageable and scale it up towards your goals. GoalKeepin is here to keep you accountable for achieving realistic goals, and gives you an ample time frame of 2 weeks for users to explore different interests and cultivate good habits.

The above investment tips, together with other useful materials such as investment books, market analysis, and proper market research on Singapore’s companies, will be helpful in your investment journey. Persistently investing and keeping abreast of the market trends will keep you at a better investment position.

It is, however, essential to note that you can also rely on experienced investors. Such investors give great insight into how best to invest. You should keenly look at your financial advisor. If your advisor makes terrible mistakes, you are bound to lose. Your investment decisions, however, need to be an everyday affair.

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