5 Smart Investment Tips to Help You Make Better Decisions with Your Money

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There is so much information on investing for beginners and experts alike on the internet today that it can be difficult to sort it all through.

Regardless of the type of markets and industries you’re interested in, or what level of knowledge you’re interested in, here are a few smart investment tips anyone can follow:

1. Only invest in things you understand. Don’t just put your money where your broker (if you have one) tells you to without first knowing WHY you should put your money there. For example, we all know that technology is the future, but that doesn’t mean everything technology-related is a good investment.

2. Don’t just assume that investing in multiple mutual funds will automatically “diversify” your portfolio. Always look under the surface of each fund to see what is there. It’s not uncommon for many mutual funds to actually own many of the same stocks.

3. If you want to put your money in a bank to earn interest, be it through CDs, money market accounts, or savings accounts, go to an online bank that has many positive views. Online banks are better able to generate higher returns than traditional banks.

More intelligent investment tips

4. One of the most important “smart investment tips” is to NEVER let your emotions get in the way. The stock industry has no place for emotion. No matter how wonderful you feel about a given occasion, it may not really be the best. Always take some time to do your research first. It is similar with the sale of shares. Don’t think that just because you’re having a good day is a good time to sell. Always be calm – never allow yourself to panic. Try to look at the bigger picture as objectively as possible.

5. Everyone has a “tolerance for risk” and it is important that you learn yours as soon as possible if you have not already done so. Even if all the indicators are suggesting that you are making a huge profit, do not invest more money than you can afford to lose. What if the unexpected happens and you lose money anyway? Will you be able to cope with the loss?

You can get many, many more clever investment tips from some of the best experts at the Motley Fool. It’s the best place to find out about all aspects of investing. Whatever your level of knowledge or experience, the Motley Fool has everything you need to conduct research.

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Source by George Botwin