How to Invest

We all know we need to invest for the future, but getting started is one of the hardest things to do. Where should you put your money…in property, shares or cash? And do you even have enough money to get started?

There are countless books and websites all telling us what to do. No doubt, some will have some good advice. But what the authors of those books don’t know is what makes you tick.

You need to understand your own personality, and invest accordingly. Maybe you’re conservative and don’t like to take on risk. If that’s the case, trading a highly leveraged product like futures probably isn’t the way to go.

Once you start looking around, you’ll quickly find there’s more than one way to grow your wealth. However, a common theme among those that invest successfully is they both understand, and are comfortable, with what they’re investing in.

How to invest in property?

If property is your thing, then that could be a place to start. And it doesn’t mean you have to rush out and buy an investment property. You can invest in Real Estate Investment Trusts (REITs) on the ASX with as little as $500.

There are wide ranges of REITs, which invest in everything from office blocks, supermarkets and shopping malls, through to childcare and medical centres. What’s more, they can pay you some nice dividends along the way.

How to invest in shares?

And if you want to invest in shares, but don’t know where to start, there are over 100 listed funds (and investment companies) that make the investing decisions for you. Some are as basic as copying the index, while others use more complex strategies, or invest overseas.

Again, you can invest with as little as $500 and see how you go. If you feel comfortable, you can always add to your holdings. Some managed funds allow you to make regular contributions so you can build up your investment over time.

If you’re uncomfortable in an investment, it can often mean that you have too much money invested, or don’t fully understand how it works. The trick is to find something you like and understand, and only invest an amount you’re comfortable with.

Ideas on the best places to invest your money

Our ideas and insight could introduce you to some of the most profitable investment opportunities in Australia.

How to Make Money from the Black Friday Sales

There’s a long running assumption that in the lead up to Black Friday sales prices go up. That’s rubbish. But while the perils of managing cash flow in a retail business is one thing, the real question you have is, how do you make money from Black Friday sales?

Investors Should Look Out for This

It’s very hard coming up with great ideas at will. Finding and understanding a good business is one thing. Then you have to find out whether the stock is worth the price it trades for.

Investors Need to Take On Less Risk

The conservative investor points to mounting uncertainty, saying investors should start taking on less risk. A fuzzy future is their kryptonite. They don’t know what will happen next and they don’t want to stick around to find out.

Five Steps to Fearless Trading

Fear is a natural response to potential danger — it’s in every human’s genetic wiring. The difference is that some people manage fear better than others. Now, these steps aren’t just for new traders. Anyone can benefit from them.

Every Trader’s Worst Enemy (and How to Beat It)

Fear is a vital emotion. It’s our brains response to potential danger. Without it, we couldn’t protect ourselves from legitimate threats. But fear can get out of hand. It can hold you back. A strategy for dealing with fear is essential if you want to do anything that involves a risk.

The Impact of Emotion on Stock Prices

Fundamentals impact investor psychology, and investor psychology has a big impact on asset prices. I’ve been writing a book on this and have recently reviewed the draft, so the concept of investor emotions having an impact on price is top of mind for me.
Money Morning Australia