If you want to build a healthy investment portfolio, that will continue to appreciate in value and which will bring in dividends, simply continue reading to discover a few investment strategies that really work.
One of the simplest investment strategies to follow is to aim to purchase stocks at a price that is lower than they are worth. So that when the cheap stocks which you purchase, increase in price again, you’ll be able to sell some of your shares for a profit.
You’d be surprised at the number of investors who only choose to purchase stocks when they skyrocket in price and seem to be doing well. However, purchasing stocks when they have risen in price is not a wise idea. As usually overinflated stocks will decrease in price, in a short amount of time.
Open a trading account in South Africa:
Instead of relying on a broker to purchase shares on your behalf, you’ll find it far more convenient to purchase your own shares on an online trading account. Which will allow you to purchase shares in ordinary shares and ETF funds, with little fuss.
You’ll also be able to track the performance of all of your shares by logging into your trading account and you’ll be able to sell your shares, without contacting an investment broker. Which should save you a lot of money. As you may be surprised at just how high most investment brokers fees are. Especially if you plan on investing small amounts instead of tens of thousands of dollars.
Follow the news in order to make wise investment decisions:
It’s well worth keeping up with the latest political and business news as you may be able to make wise investment decisions based on the news that you learn about. As an example, you may discover that share prices in a certain industry such as the power industry are going to fall temporarily, due to new legalisation. In which case you’ll be able to quickly purchase shares in power companies at rock bottom prices. Before they rise again.
Purchase shares in businesses which have experienced steady growth over the past decade:
When you assess the share price graphs of different businesses, compile a list of businesses which have continued to experience steady growth over the past decade. As these businesses should continue to grow in time, which means that the shares which you own will appreciate in value over time.
Avoid investing in shares which have shown share price volatility:
When you’re assessing share price graphs from multiple businesses, make sure to avoid investing in businesses whose share price skyrockets up and down over the past 5-10 years. As such businesses are far too volatile to invest in, for the long term. However if you manage to pick up some of their shares cheaply, you may be able to sell them, with a quick turn around, to make a bit of quick cash. Which you’ll be able to invest in other businesses who are less volatile and will make better long term investments.
So if you’re looking to employ investment tips and tricks that really work, it’s well worth trying out all of the proven investment strategies, which have been listed above.
