How to be good at investing 📈💰

To be a successful investor, it requires more than just knowledge of finance and stocks. Imma dive in on the key areas you should learn before you start on your investment journey 👇

1) HAVE BASIC KNOWLEDGE ON BUSINESS 💰

Remember when you are buying a stock, you are buying a piece of a company. You have to put yourself in a businessman's POV and think like a businessman. Understand why you are buying the company - How do they stand out from their competitors? How do they earn money? What is their business model? Having basic business knowledge serves as a foundation when you want to start your investment journey. At the end of the day, you only want to buy companies that you understand.

2) UNDERSTAND INVESTMENT LITERACY 📚

Besides having basic business knowledge, you have to also familiarise yourself with how the stock market works and the different investment instruments (Stocks, ETF, Index funds etc) so you know which one you prefer investing in based on your preference and risk appetite. You also have to know some things like:

- difference between trading and investing

- What makes a good stock and how to pick a good stock

- What are your investment goals (growth, stability etc)

- Which broker is the best for you etc

3) LEARN FINANCIAL LITERACY 📝

After choosing companies to invest in, you have to review their financial statements (Balance sheet, income statement , cash flow statement) to ensure they're financially healthy and if they have any growth potential. This will help you decide if they’re worth investing in. If you took accounting in school, it'll be way easier for you to understand haha. Learning about financial analysis means that you also have to learn how to value a stock - You wouldn't wanna overpay for a stock would you? It's like paying $10 for some Pokka Iced Lemon Tea 🤮

4) KNOW BASIC ECONOMICS 🌏

Having basic knowledge on economics will also help you be a better investor. You'll understand how things like interest rates, inflation and news will affect market trends and stock performances

5) UNDERSTAND MARKET PYSCHOLOGY 🧠

Before you start buying your first stock, it is really important to understand market psychology. It helps you understand how emotions like fear and greed influence market movements and can help prevent you from making impulsive decisions like panic selling or buying at high prices due to FOMO. Understanding market psychology will make you a more rational and risk adverse investor. Like the GOAT 🐐 of investing, Warren Buffet, once said , "Be greedy when others are fearful & be fearful when others are greedy". No point having all the knowledge and skills when you cannot control your emotions in the market

6) CHART READING 📈

Finallyyyy - the cherry on top 🍒 It's not really important to learn how to read the charts as an investor but it can definitely help you maximise your returns when you know when to enter and exit at a better price

Thank you all for making it this far in my post 🙂‍↕️ Follow me for more in-depth beginner friendly finance lessons 🦭

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