If one of your primary goals is to increase your level of passive income and you’re interested in investing some of your savings and disposable income, in order to make a profit,Gordon Tang believes to discover six tips which will help you choose wise, profitable investment opportunities!
Six Tips on Making Good Investments:
Calculate your projected return on investment
If a particular investment opportunity offers a projected return on investment of under 10%, there’s little point investing your savings or disposable income on an investment, which is unlikely to bring you a decent return on investment. Instead look for investment opportunities which offer you a competitive projected return on investment.
Check different stocks market price over the past two years
Before you make your first investment in a particular company, it’s well worth checking how its market price has fared over the last two years. As if a company experiences major drops in market price, you may want to consider investing your money in an alternate investment, which is offers a more stable, reliable market price.
Wait till a stock’s market price dips slightly before purchasing your stocks
While many individuals choose to purchase stocks when they skyrocket and start to feature on the news, you’ll get a far better deal if you keep an eye on stocks’ market price and purchase them when they decrease in price slightly. As that way, you’ll have the option of selling the stocks which you picked up relatively cheaply, when their share price recovers, for a quick profit.
If you have little knowledge about stock trading, consider talking to a financial advisor
If you’re relatively inexperienced when it comes to buying and selling stocks, you may want to book an appointment with a reputable financial advisor, who’ll be able to help you build a stock portfolio, which suits your individual goals as an investor.
If in doubt, purchase stocks from well established, well performing companies
While you may be able to make a small fortune by purchasing a great number of stocks in a start up business which may flourish, if you don’t want to take such a big gamble, you may prefer to purchase stocks from well established companies. Which have a proven track record are are unlikely to take a massive dip in market price. Examples of which include Apple, Amazon, Microsoft and Alibaba.
Diversify your investment portfolio
While you may be tempted to invest thousands of dollars in purchasing stocks from a single company, which you believe will skyrocket in price, in the coming months or years, it’s far safer to diversify your investment portfolio.
By spending your disposable income and savings on a wide variety of stocks, if one company which you invest in crashes, you may still be able to bring in a decent profit. As it’s highly likely that at least a few of the companies which you invested in, will be bringing in a decent profit.
So if you’re determined to increase your amount of passive income, in order to take control of your financial future, it’s well worth keeping the six investment tips listed above in mind.