So, where do I start first? We all need some beginner investing tips, so this is a typical question you will ask yourself when you begin your journey of learning about investing, and getting started in investing. Well, just like anything else in this life, you should probably get some background knowledge, and then go out there and practice, practice, practice and then practice some more.
Remember when you were little and you learned how to ride your bike, and it had training wheels in the beginning, so that you wouldn’t hurt yourself? Well, this is the same idea, except that your training wheels in this case come in the form of reading books, using online resources and paper stock trading accounts to practice investing. These training wheels will stop you from seriously hurting yourself and possibly losing more money then you expected or had budgeted for learning about investing.
So, when I say educate yourself, I mean read a book, check out a few good websites, this is where I learned about investing when I started out at the age of 12, or simply pick up the business section of your local newspaper. You have to learn, and you have to start somewhere. Read one article about investing and the stock market each day, and a funny thing will happen, soon you will start to become familiar with new words, terminology, and the financial markets. Soon, you will begin to understand the language of money, stocks, bonds, dividends, and interest; those words, if foreign now will eventually become second nature to you.
One of my favourite books about financial education is Rich Dad Poor Dad, by Robert Kiyosaki. It is a great book that I recommend to everyone looking to get started in investing because it exposes people to a different way of thinking about money, investing and business, and it teaches them basic accounting and financial concepts. Accounting is the language of money, investing and business, and it is vital to understand for success. You will need to know some basic accounting terms and concepts in order to progress in your journey to get started in investing.
So, my first beginner investing tip for you is to start small and practice often by reading the business section of your local newspaper, highlight the words that you do not understand, and then look them up, so that you can begin to learn and understand finance and investing related terminology.