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Starting your journey into investing?
What is your risk tolerance?
I have a few tips and questions to find your answer.
- Thread -
What is your risk tolerance?
I have a few tips and questions to find your answer.
- Thread -
1/
How much can you afford to lose?
This is the most critical question of them all.
Always have a significant savings ready for emergencies so that a strong market dip doesn't scare you into selling.
If you have a giant debt maybe start slow in your investing.
How much can you afford to lose?
This is the most critical question of them all.
Always have a significant savings ready for emergencies so that a strong market dip doesn't scare you into selling.
If you have a giant debt maybe start slow in your investing.
2/
How much money do I need to reach my goals?
If you are trying to make $100 dollars quickly trading you will not need a giant sum of money.
If you are looking to retire at 55 with $2 million and you are 45 time you need to invest large quantities of money every month.
How much money do I need to reach my goals?
If you are trying to make $100 dollars quickly trading you will not need a giant sum of money.
If you are looking to retire at 55 with $2 million and you are 45 time you need to invest large quantities of money every month.
3/
How do I react to losing?
This is a big one in determining your ability to ride the waves of the market.
Some days it will go down
Some days it will go up
If you had $100,000 in the market and it went down 5% in one day you would have "lost" $5k in one day.
How do I react to losing?
This is a big one in determining your ability to ride the waves of the market.
Some days it will go down
Some days it will go up
If you had $100,000 in the market and it went down 5% in one day you would have "lost" $5k in one day.
4/
Can you handle a significant down day and not hit the panic button?
This is where most investors lose.
They are doing great until a big drop in the market happens.
Guess what. No loss is realized until you sell.
This is the biggest hurdle in being a long term investor
Can you handle a significant down day and not hit the panic button?
This is where most investors lose.
They are doing great until a big drop in the market happens.
Guess what. No loss is realized until you sell.
This is the biggest hurdle in being a long term investor
5/
The more you understand your own personality the better you can determine your risk profile.
If you hate losing $5 dollars maybe an index fund that carries the broad market is best.
$VOO
$VTWSX
$VOO tracks the S&P 500 as a whole
$VTWSX tracks the worldwide markets
The more you understand your own personality the better you can determine your risk profile.
If you hate losing $5 dollars maybe an index fund that carries the broad market is best.
$VOO
$VTWSX
$VOO tracks the S&P 500 as a whole
$VTWSX tracks the worldwide markets
6/
If you like risks in your life then individual growth stocks might be your investment vehicle.
You can make a lot quickly but there is also high risk factors.
$TSLA
$PTON
$ZM
Remember there are also big losers in growth stocks
$GPRO
$FIT
Know what you are able to lose.
If you like risks in your life then individual growth stocks might be your investment vehicle.
You can make a lot quickly but there is also high risk factors.
$TSLA
$PTON
$ZM
Remember there are also big losers in growth stocks
$GPRO
$FIT
Know what you are able to lose.
7/
This is not investment advice
Try to understand your own tendencies and then use them to match your investment styles.
Never put anything in the market you aren't willing to lose.
It will cloud your judgement and force you to make bad decisions.
Comments and DM open!
This is not investment advice
Try to understand your own tendencies and then use them to match your investment styles.
Never put anything in the market you aren't willing to lose.
It will cloud your judgement and force you to make bad decisions.
Comments and DM open!
