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Where to start investing? 10 step advice ...

Where to start investing? 10 step advice to new investors

May 08, 2021

Dear Keen Investor,

First of all, well done for taking the first step towards your goal of achieving Financial Independence. You certainly have come to the right place to empower yourself with ways to grow wealth using stock market investing.

But if it is all new to you, it is likely that you are scared, or at the least confused or in worse case scenario you are tempted by everything you see online. Don’t fall prey to pump & dump scheme. Don’t chase the Holy Grail of investing/trading. It doesn’t exist.

Follow these 10 steps at the beginning of your investing journey. This will serve you well. (You can thank me later and Buymeacoffee with the link below 😊)

When you start thinking of investing in stocks, you need to explore and understand various things about it first, it won't take much time, but don't rush into things without knowing.

There are so many avenues to know these things now - spend the next few weekends on these topics:

1. ISA accounts (for UK resident) and differences between various brokerages (eg. Interactive Investor (II), Hargreaves Lansdown (HL), Trading212, Freetrade, AJBell, Degiro, and a few others)

2. Compare the monthly fee, per trade commission, Forex charge while trading non-UK shares, whether they offer you to invest in only shares or allow funds, ETF etc. Do they allow you to place buy limit orders, and stop loss (some brokerages don't have this facility) - not needed if you are long term investor for many years - but if like following VIP porftolio process like mine, you need Stop loss preferably.

3. Read difference between Mutual Funds and ETF and Investment Trust

4. Google Vanguard and go to their site and read about various funds available. I have invested in their Life-strategy 100% fund for my child. There are many others too.

5. Google and read about Chart price action - basics like Support and Resistance, Candlestick chart pattern. There are some online video talking about it. GrowWealth has On-Demand video training session on some of them - See the ‘Extras’ section of our page.

6. When starting new - Don't expect massive, consistent return from trading. It will happen once you are familiar with what you are doing. Beginners luck shouldn't be misconstrued as skillful trading. That (over) confidence can lead to big losses.

7. I would even suggest that you look to ‘invest’ first before short term ‘trading’ - i.e., If you are skillful cricket player who can play the test match well, you have all the skills needed to subsequently to play one day match, T20 and T10 matches (Yes, I like 🏏 Cricket). This approach will keep you in the game for longer and that is how you accumulate wealth.

8. GrowWealth page has many useful Free resources - spend some time to go through them. They may not be extensive and may not have everything you want to know, but keep an open mind and absorb everything you need to learn before you invest another penny.

9. If you would like to follow my investment strategy and know what I buy (when and why) and where I place stop loss etc in my VIP portfolio - feel free to come & join us.

10. LAST BUT NOT THE LEAST - Do What Works For You. Don't Just Do Something Because Someone Else is Doing or Posted Online.

Some of the posts in GrowWealth that might help you:

When you visit the GrowWealth main page - go to the posts and filter it for 'education' category - many posts there will provide useful info on investing and trading process/psychology and strategy etc.

GrowWealth empowers you to invest better for a happier and richer future.

Happy Learning and Successful Investing.

If you like what you read, like, comment & share. Jon me in empowering your friends and family in investing better.

My gratitude 🙏 to those who supported this page with your Buymeacoffee contributions.

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