Sam Tabar has come out with af press release that highlights some key tips for new investors looking to build up their wealth for the New Year. In his press release, Sam Tabar stated that the single most important thing to keep in mind when investing is to maintain a diverse portfolio. He also gave advice on which investment options are best avoided unless you have the expert knowledge and back up funds to handle such an investment.
Diversification is critical to any investor because it helps protect you against losses and increases the chance that you will make a profit from at least one investment. It may be tempting to pool all your money in a hot stock or into a new trading platform, but this carries a lot of risk. Spread your investments out instead, says Tabar. A stock may be rising rapidly now, but it may crash in the future. If you put all your money in one basket, then your risk of losing all of your savings greatly increases. That is why you should diversify your investments in various categories such as stocks, bonds, gold, mutual funds and even businesses.
With a new year around the corner, Tabar also states that too many people wait far too long before they began investing. Procrastination is a big problem. The best time to begin investing says Sam Tabar, is to start right now. The sooner you start, the better. Starting early lets you enjoy the benefits of compound interest. This is when you can use the interest or return made on a previous investment to invest again into another investment.
Sam Tabar also suggest that new investors and novices stay away from trading commodities. This investment option requires a lot of in depth knowledge. It also requires a substantial amount of money in reserve to offset possible short term losses before one sees a return. He suggests that new investors instead stick to simpler and safer options such as stocks, bonds and precious metals. Investing in businesses is also a new, yet generally safe investment option that can reap good returns.