Asked 6d ago
Avoid any single stocks, it does not work, as compared to averaging with passive ETFs.
avoid quite a lot of other things:
Hey Benji! Good on you for wanting to take the first step to investing. I think there are a couple of questions you need to ask yourself before ascertaining the stock / asset class / investment vehicles most suited for you. I cannot point you the exact stock, but I can show you the direction you can take to aid in your decision making.
1) Risk Profile
Some would recommend stocks like Tesla where it could rise and fall 5-10% daily (meaning if you put in $1000, it could drop to $900 within a day). Would you still be able to sleep soundly at night despite the fall?
Or are you a more conservative investor? Looking more for stability in investment vehicles such as ETFs where volatility is much more subdued?
2) Capital gains / dividend yield
If capital isn't that much of a concern, and you're looking more towards passive income, you could consider looking at high-yielding stocks i.e. REITs. However, if you're looking more on capital appreciation, you could find stocks from industries that are going to be in the trend.
I would recommend you to read a lot of business news, notice which are the companies that are highly raved and discussed, whether is it for positive or negative reasons. Browse the markets and notice the prices. If there are drastic falls in prices, what triggered it? Are investors over-reacting?
Okay, I think you've got more than enough to get started. Always remember to invest in stocks that you understand - by understanding I mean it's business model, revenue generator etc.
Just a note that price actions for this year would be drastically different from previous years due to what is ongoing now. Hence past figures have a higher chance of a greater variance moving forward i.e. Company A has revenue growth for past 5 years but because of current situation, will most likely hit a roadblock.
I think it is incorrect for us to recommend stocks to invest in this thread and community. One has to do their own research and due dilligence at the end of the day. I think the problem with beginners is that they see the current market as an online casino where they will see instant profit after they hit the buy button. This is not the case in normal circumstances where market is not flooded with a lot of liquidity.
It takes a lot of time and effort to research a company and really doing your own research will make you sleep better at night than listening to advice like XXX sure buy, bao jiak one.
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