4 Investing Tips for First-Time Investors

It doesn’t matter whether you are a beginner or experienced investor. There are a number of valuable tips that can help you to invest more profitably.

Yet the ones who need the most help are those who haven’t invested or want to for the first time ever.

Here are 4 investing tips for first-time investors:

1: Just get started

Even if you have modest funds, that’s fine. This is because brokerage commissions are very cheap and which is why you can start with a few hundred dollars. A couple of excellent online brokers include TD Ameritrade and Interactive Brokers. Don’t hesitate – go ahead and buy that first stock.

 2: Keep it simple

How you do this is by investing in the cheapest index trackers that can be found. Know that investing in actively-managed funds is not worth it at all. This is because only a few managers can beat the market leave matching it. So, invest on your own without losing money from your returns to someone else.

3: Invest small amounts at first

Some brokers apart from Dividend Reinvestment Plans (DRIPs) allow you to invest amounts as less as $10 while paying no commission. So, it’s a good idea to look for a no-cost broker and invest in a company that you understand and probably purchase products from. If you want to learn how to invest, just get started.

4: It’s all about compound interest

Those who truly understand it will earn while others will pay it. This is why dividend growth investing is a viable way of increasing your income until it turns into a fortune. This is because the amounts that you invest will compound over the long-term.