Investing is the only way forward when it comes to creating financial freedom and individual wealth. The beauty of the investment landscape before us is that literally anyone can become financially secure with a commitment to the right fundamentals and enough time. Yet far too many early-stage investors put their eggs in the wrong baskets (or sometimes in just one “basket”), and have to contend with early losses.
Mitigating losses in a long trending market takes patience and an overriding strategy for continued success, and the best part is that building this pathway to success is actually quite simple.
With these four tips, you can start your journey in the right way and build toward a brighter future.
1. Time is your best friend.
With enough time, any investor can build the portfolio of their dreams—even becoming a millionaire in the process if you work hard enough at it. This might sound too good to be true, but the fact is that the richest investors in the world all understand this simple and powerful truth: Time is the most important facet of a winning investment strategy.
The average investment on the New York Stock Exchange (NYSE) doubles roughly every seven years. This means that early-twenties investors have the potential to double their money six or seven times before they reach retirement age. To put this into practice with a simple calculation, every $10 invested at this early stage of your career equates to a massive $1,280 when you finally take it out at the end of the pipeline after seven doubling events.
2. Find sources of information that you trust.
Investing runs on the power of time, but without sound investing research, it’s next to impossible to mobilize your capital investments to their full potential. Some of the world’s greatest investors rely on fundamental research as their primary daily activities in order to make intelligent decisions with their assets.
A savings account (or investment account) is a great way to protect the principal, yet it takes skilled research and sources that you trust for great information to make that money work for you rather than sit idly as the caustic effects of inflation deteriorate your long term purchasing power. Sources like Wealth Rocket seek to provide this backdrop to the retail investor (see more at www.wealthrocket.com). Understanding credit, savings account options, and investment strategies remains a must for anyone looking to create long term financial stability. With a high quality look into credit card, online bank, and interest rate information to go along with your investment research, Wealth Rocket provides a fantastic resource for investors looking to branch out.
3. Take stock picking to the next level.
Stock picking is a rite of passage for any investor in the United States, North America, or beyond. One space in which investors find great dividend potential and underlying asset growth is within the network of gold mining projects and gold miners that trade publicly. Alamos Gold (NYSE:AGI) is a fantastic option for anyone looking for a great pick. The subsidiaries of Alamos operate all around the world, with active mines churning out ounces of gold in North America as you read this (the Mulatos Mine in Mexico, and Young-Davidson mine and Island Gold mine in Northern Ontario). Alamos is an industry leader in the U.S. and Canadian mining space, yet their Kirazli project in the Republic of Turkey is one of their most exciting, search “Alamos Gold, Turkey” for more on their operations in the Turkish project. By eliminating the use of cyanide and other chemicals from the extraction process that nets ounces of gold, Alamos has become an environmental leader that investors love to buy into.
4. Invest in long trend ETFs, Index Funds, and others for stable growth.
Finally, long trend investments in index funds, ETFs and other market trackers can help you continue earning growth no matter what the market throws your way. Over the long term, markets have done nothing but expand. This is a natural product of the inflation of the dollar and other currencies, and the increased population over time (who collectively spend these currencies). Investing in market trackers gives you stability to chase after individual stocks that excite you.
Take these tips together for the best possible results.