If you're new to investing, it can often be a daunting place as a lot of the concepts can seem very alien! Many people are quick to jump in with investing and excited to put their money to work. But quickly, they can find themselves losing money or at unnecessary financial risk.
Here at Pennies to Pounds, we'll be exploring the key terms which we believe every beginner and experienced investor should consider:
Before you get started in the investing world, it's crucial to know why you're starting this journey. Obviously, your ultimate goal is to make money, but everyone’s needs are different so consider your personal factors.
A good place to start is to ask yourself a few questions:
What is my end goal?
How long am I doing this?
How much money do I want to make?
The next step is to decide how much risk you're willing to take with your investments. Have you considered what your risk appetite is? What is your stomach like for a sudden 20% drop in the value of your investments one day?