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How You Can Pick Up Investing

For novice investors, investing may seem daunting as it requires lots of knowledge and involves plenty of reading and research. When I first started out as a rookie investor many years ago, it was mainly my strong interest in growing my wealth that motivated me, even though I knew I had to conquer a steep learning curve. This article should help new investors ease their way into investing as well as explain the process of learning and absorbing knowledge in a slow, measured manner.

New, unfamiliar territory

It’s normal to feel nervous when we step into new, uncharted territory. For investors who are not used to financial and accounting terms, investing may seem even more intimidating. My advice would be to take the time to understand each and every financial term by reading numerous books and articles. At the same time, it’s also important to continually scan news articles on investing so that such terminology is reinforced in our brains.

Steep learning curve

As we start to delve deeper into investing, we usually encounter a steep learning curve since it’s an entirely new landscape that comes with a host of unfamiliar words and phrases. This phase is probably the most daunting of all, but you should persevere and maintain the discipline of learning. It’s easy to feel discouraged, but the idea is to keep reminding yourself of the end goal in order to stay motivated.

Putting theory to practice

Once we manage to understand and absorb the key terminology associated with investing, we must remember to put theory to practice by developing our own investment processes and coming up with investment theses as we begin to deploy our capital. There is no better teacher than experience, as the saying goes, and there’s nowhere this is more true than in the realm of investing.

The Foolish bottom line

This article serves as a reminder to any investor who is just starting out: There is always a steep learning curve to conquer, but don’t let that discourage you. Be determined to learn as much as you can and become a better investor, as such skills will reward you with financial security for the rest of your life.

Meanwhile, there are 28 surprising and important things we think every Singaporean investor should know—and we’ve laid them all out in The Motley Fool Singapore’s new e-book. Packed with information and insights, we believe this book will help you be a better, smarter investor. You can download the full e-book FREE of charge—simply click here now to claim your copy.

The information provided is for general information purposes only and is not intended to be personalised investment or financial advice.