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New To Investing? Let’s Get Back To Basics

Credit: Ethan Lofton

Hello to our beginner investors! New to investing? No worries. Here is a quick guide to help you get started.

We will break it down for you. Well done for choosing to start investing, you will find the journey very rewarding. Here are 5 steps for you to start enjoying investing.

Step 1:

If you are new to investing or even for those who want to recap your knowledge, please read our special FREE report titled “What Every New Singapore Investor Needs To Know”. It is a quick 5 to 10 minutes read on what’s really important about the stock market.

Step 2:

Research more online about the different styles of investing. Read books talking about how you can make an investment. You would realize, as my fellow contributor Hui Leong has discovered, that value investing has no written rules, so we need to find a strategy that suits our personality.

Step 3:

Once you are comfortable with a style of investing, you can try out a form of risk-free investing. It is what investors call a “paper trade” – you basically invest just on paper. Keep a record of companies you are interested in and “invest” in them on paper. You can track your performance and review your investment thesis from time to time. This is a great way put theory into practice without risking your hard earned wealth.

Step 4:

Invest! Once you are comfortable with your investment decisions, maybe it is time to test it out in the real world. Always start with a small amount of money that you can be comfortable with. As you grow more confident in the future, you can consider adding a larger section of your liquid assets to your investments.

Step 5:

Enjoy the process. The most important thing in investing is that you have to enjoy doing it. As long as you are passionate about it, remain humble and continue learning, you will find that the journey itself is just as rewarding as the end result.

If you would like a more detailed guide, you can also check out our 13 step guide, 13 Steps To Financial Freedom, on our website.

The Motley Fool Singapore also has a FREE weekly newsletter, Take Stock Singapore, that provides more guidance on investing.  You can choose to sign up here for free.

Happy Investing!

The Motley Fool's purpose is to help the world invest, better. Like us on Facebook  to keep up-to-date with our latest news and articles.

The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Stanley Lim does not own any companies mentioned.