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Top 10 share investing tips
1. Start investing now
Don't wait. The sooner you start to invest, the better. Time is an investor's best friend, because it gives compounding time to work its magic. The earlier you start the less you have to invest to reach your goal.
2. Invest regularly
Investing is not a once-off thing, it is something that you continue doing throughout your life.
3. Don't borrow to invest
This should be logical, but many people fall into this trap. Also remember to only invest what you can afford to lose.
4. You're buying a company, not just shares
A share performance is dependent on the company, which in turn is dependent on the environment in which it operates. This includes its industry, the general economy, politics, its customers, etc.
5. Buy shares in a company making a profit
If you buy a share in a company not making a profit, you are not investing, you are running a risk.
6. Diversify your share portfolio
Spread your investment across different companies and over different sectors. The biggest risk in investing is putting all your eggs in one basket. The easiest way to diversify share investments is through exchange traded funds (ETF).
7. Don't buy on hot tips
Do not buy into companies unless you have done your homework first.
8. Don't try to predict market moves
Trying to predict the direction of the market is difficult, even experts are not always accurate.
9. Buy and Hold for the long term
Continue to monitor your shares during this period, but consider selling your shares if general economics have changed or if the value of your shares is not appreciating.
10. Be Patient!
Investing for the long term will let you ride out the unavoidable ups and downs of the market.