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Invest With An End In Mind

We’ve all heard of someone who’s made money in the stock market. This person might be showing us his or her new watch or bag, the result of his or her investing success. When the success of someone’s investing is in plain sight in the form of a new watch, this might tempt some to jump right into the “investing game”, and follow the lead of the person who has demonstrated a little success. However, if we jump right into investing without a purpose, we might end up finding ourselves wasting our time and money.

Written Goals

A research study shows that people who write down their specific goals and shares this information with someone is 33% more likely to be successful in reaching those goals compared to someone who just thinks of it. So before we buy our first stock, give it some time to think about why you are investing. This is because the reason of why we are investing will influence the strategies we should engage in.

For example, if you are investing to earn for a new watch or a new bag, you might be more interested in investing for a shorter time frame. Or you are saving up for your children’s education which is a decade (or more) away or want to invest so that you can reach your goal of becoming a millionaire earlier. Once you are aware of why you are doing it, you can focus on an investment that suits your goals.

Investing for the short term tends to be much, much harder than investing for the long-term. The longer your investment time horizon, the less reliance there is on luck. Therefore, if you are investing for the long term, there is a systematic approach for you to become a better investor. We at The Motley Fool Singapore have created an easy guide for you in your quest to becoming a better investor. The guide, titled 10 Steps to Making a Million Singapore Dollars in the Marketis FREEClick here now for your copy!

So, take a step back and write down your objective for investing, tell your friends about it, read our guide to learn the 10 easy steps to investing and most importantly, enjoy the journey.

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 company mentioned above