16 Jan 2021
Hi, I'm new to the investments and would wish to learn and get tips on how I should start investing whether its sg markets or overseas?
Any tips for a new investor on how I should start investing for SG markets or overseas?
Since you are new to investment, you can sign up a paper account with Tiger Broker which is like a training account that doesnt require depositing of real money to trade. In this way, you can try out trading before using your actual real money.
The best learning is to read the news, the company earning annoucement and monitor how the share price reacts to it.
Why I recommend Tiger Broker is because as a person new to investment, you will want a reliable broker with low commission charges and Tiger Broker fits in as they have office in Singapore and also regulated by MAS. They also offer SG, HK, US and some other markets for trading. Hence, this meets with what you are looking for and is also in a way diversifying your investment when you start trading in the near future.
Do take a look on my blog for the steps to sign up the Tiger Broker account.
Tips - only invest with money you can afford to lose and always set aside a portion of money as emergency fund!!
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Hi, I'm assuming you're relatively young now and looking to get investing early for retirement in the long run.
For beginners looking for wealth accumulation, I will recommend starting with Index Investing. Essentially, indexes are a basket of companies used usually to represent the performance of a country's economy or an industry. For SG, we have the STI and the US has the S&P 500. By investing in funds that track these indexes, when the index moves up, our investments move together with it as well. Since markets tend to trend upwards, your investment should too as well in the long run. The S&P 500 has actually returned a whooping 9.8% since the 1920s per annum!
Between SG and overseas, I would definitely recommend a US index or a global index to start. Both have done well historically compared to the STI and are also much more diversified. You can try the following ETFs:
CSPX (Irish Domiciled S&P 500 ETF)
VOO/IVV (US Domiciled S&P 500 ETF)
IWDA/VWRA (Irish Domiciled Global ETF)
VEU/VXUS (US Domiciled Global Ex US ETF)
If you are uncertain about which broker to use, you may also check out my comparison here!
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