SG Budget Babe
Asked on 04 Dec 2019
Read more investing books, forums (hardwarezone, seedly, sharejunction), financial blogs, and if you are willing to, join an investment course. But I would advise you to focus on books & forums first before deciding to join the course - build up the initial knowledge first through reading (a lot)!
I'll share my journey here. I started by reading up. A lot. There are tons of useful resources out there. It will take months to digest the content. It's free, so no worries about cost.
Then I started following some financial blogs, meeting financial consultants to ask questions. Again, this is free.
Then I started attending seminars and paid events to learn more. This culminated in me signing up for my first ever paid course, which was very useful for me as it saved me quite a fair bit of time in putting together my knowledge.
Then I ended up in this line with a mentor (my current director) so that really supercharged my knowledge. This last step is not for everyone though. You probably can make quite a fair bit of progress with the first few steps I outlined.
Hello! It's great that you're starting. There's so many free resources now and you can start from reading financial books, here's a great list to start with: https://www.sgbudgetbabe.com/2017/07/recommended-books-on-personal-finance.html?m=1
Financial blogs are another great resource. I have quite a number of articles on investing for beginners so you can check those out too!
Otherwise, I also recommend exploring courses such as those offered by The Fifth Person or Dr Wealth!
Of course, and learning how to invest is DEFINITELY not a function of work experience. In fact, starting to invest is simple.
How to Start Investing
1. Accumulate capital. Everyone needs to start with some investment capital. Also of your pool of available capital, decide how much you want to invest.
2. If you can, start as early as possible. Compound interest allows your account balance to snowball over time.
3. Open your CDP account (which you have already). For the benefit of those who haven't, sign up via the instructions here: https://investors.sgx.com/cdp-account-opening/#/form-selection
4. Open your brokerage account, and link your CDP account to it.
5. Understand your investment options.
There is a whole world of investment products out there from stocks, bonds, ETFs, mutual funds to the more exotic or less mainstream ones like art pieces, scultures, gold, and cryptocurrency.
Read up lots to understand your risk appetite, and form your own investment strategy.
6. Execution is everything
I always like to say that one can spend a decade reading and not deploy a single cent because of fear of procrastination. I always say to start early, and start investing in small amounts so that you can better understand yourself as an investor.
First, read up about etfs. In a nutshell, they are funds that hold stocks that make up an index. They are generally less risky than buying individual stocks.
If you want to achieve better than market returns, learn how to perform fundamental analysis and technical analysis. This will provide you with the skills to pick individual stocks sensibly.
Once you are more experienced and have more capital, you may want to venture into fixed income products, derivatives (e.g. options, futures) and alternative investments (e.g. commodities, property)
For me, i do this by
Investment books (what metrics to look out for, build your mindset, learn people mistake)
read blogs (why they choose certain stock, what is their holding/portfolio)
subscribe to services to give you more analysis or easier management like stock cafe or stock report analysis, can also be screener
paper trade to get some hand on experience.
throw in some real cash to buy real stock and check on the mindset.
I personally started investing quite young due to my family background (at 18+) and to be honest I have no idea why I invested in the stocks I did at that point in time (I just followed whatever my parents said was a good buy).
After investing for almost 5 years I've learnt a few key points:
1) Read and research. It can be anything from books, financial blogs or even the news. This will help you to understand what are the various types of investment available to you (and also helps to keep you inspired)
2) Find an investment style that suits you - what are you financial goals and risk tolerance. While you can refer to others make sure you do your own due diligence before putting your money in. There is no 'best' investment just the investment portfolio which is best suited to your needs
Hi Pavithra, I've also been working for almost 5 years now, and I remember starting off my investment journey in my 1st year by reading! Since we have Google now, a lot of information can be found easily through Google. But for localised information, financial blogs like The Heartland Boy, SG Budget Babe, My 15HWW, thefinance.sg; can start you off on the right track.
I found it useful to read on personal experiences, mistakes they've made and how to avoid them, that have helped me to shape and understand better my own financial appetite/risks. Also reading encouraging posts like how they made their 1st $100,000 by age 30 and the steps outlined to do that, helps you to feel that you are not alone. There are many investments available, so reading up on each investment and the tools required will help you to understand better.
Before you start investing, do remember to save your own emergency fund first! You can do it concurrently as you invest, or you can save up a lump sum first to give you better assurance. And also figure out your risk appetite, do you invest to gain higher margins or are you a safe investor where you invest to beat the inflation rate merely?
Can choose to go for some investing courses. Fins the one suitabke for you. Courses will help you to expedite your knowledge and learn from those whk have gone through all the painful mistakes in the past. So you will can avoid the painful lessons. But, choose courses wisely as alot of those out there doesnt value add.
Before you start investing, it will be best to understand your objective. Here are some questions to help you:
What is your capital?
How will you want to invest your capital? E.g. lump sum or an amount on a regular basis
How long will you want to stay invested? E.g. 10 years
What is your risk appetite? E.g. How do you feel about short-term volatility?
What is your objective for investing?
At the same time, I started learning how to invest by reading. I read tons of news, market research reports, independent analysis of stocks, company's annual reports and even just general market news.
All these information helps me to understand the market and factors that will affect the market movement. Once you feel confident enough, decide if you want to invest your money or to do a simulation on the market.
You will reach a point where you know the time is right to start investing. =)
Here is everything about me and what I do best.
I think to start - you can look at robo advisor if you are not an active investor, i.e. passive investor. You could possibly start with some financial blogs, like seedly.sg or thefinance.sg.
Personally, I joined the VIA club, which is the Value Invest Asia club for membership which I learnt a lot over there. Gradually start small, and eventually you'll be more confident.
take up accounting courses to learn the principle of accounting
read up on stock forums such as seeking alpha and valuebuddies, there is a wealth of information in such forums
Read on books such as "the little book that beats the market" and "One up on Wall Street"