This is a guest post by Kevin Craig who is a financial writer of OVLG community. He has helped lots of debt burdened people with free counseling and advices on many finance related topics.

The nascent investors in this world of investment are always in search of useful saving tips. Being an amateur in the investment field, this article can act as the right vehicle that would help you to pave the right path with investment guidelines.[ad#tdg-embedded]

As the proverb goes “to have money is good, to have control of money is still better” and in order to have better control over the money choose a right investment plan.

This article will give some investment tips that will be beneficial for all young investors.

1. Keep the investment plans simple:

When you are new to the field of investment then it would be advisable for you to keep the investment plan simple. Try to focus on the relevant points that would help you to understand the plan better. Prediction by a novice can lead to some unpleasant surprises while investing. In order to enhance the rate of success in investments pick a correct economic channel that would offer security on a long term basis.

2. Invest when the market is going through a doldrums:

The best time for investment is when the financial market is going through an unstable situation. It would be the right time to buy share in the “Bear Market” and sell in the “Bull Market”. But there are many young people who would invest at the time of boom and sell it, at the time of recession. Due to lack of investment knowledge they are forced to take wrong decision in the finance market which leads to monetary loss.

Due to unavoidable circumstances you might have entrapped yourself in the labyrinth of debt. If you are going through a financial doldrum, remember before investing go for a debt settlement program.

3. Invest in superior companies:

As it is said that “a fertile ground can produce abundant fruit season after season”. Similarly the reputed companies usually do well year after year. You can plant the seed in these fertile fields (superior companies) as these would be the perfect place to invest your money. As these companies are acknowledged for their honesty and ethics in the market, you can afford to invest with full faith. The profit would be the evidence for the following investment. Even if you do not reap the returns after investing, I can assure you that you won’t run at a loss as these companies won’t cheat you.

4. Past performance can pave the path for future result:

The past performance of the company you are investing in would help you to judge the future result. Flourishing companies would find new ventures in the field of investments that would help the investors to reap a good profit. Give credence to the companies who are planning to expand in new lines of business. But you too need to be aware of the fact that past performance should not be the parameter to judge a company while investing.

5. The way of fool is right in his eyes but a wise man listen to counsel:

As a young investor making hasty decision can end up in poverty. A financial counselor can guide you through the roller coaster ride of investment. They can anticipate the market changes faster than a non professional. Before investment try to talk regarding the investment plan you want to venture with your counselor. The professional investors would do an extensive research about your financial status and give you an investment plan that would suit you best.

6. Be composed:

Boom and recession is part and parcel with the investment market. If the market is going through a tough time and at this present scenario you have invested a huge amount keep your calm. Study the graph of the market but if you notice no changes with the company then you patience would pay off. Being hostile can take a toll on your investment.

7. Quality is more important than the price:

Future should be your prime focus for investment. You should focus the attention to the companies that have bright future prospect. The companies that can increase the value of the share over time would be ideal for investment. If you have enrolled for a long time investment then you can afford to be luxurious as the company would be reliable.

8. Invest your money where there is value:

There is a great difference between a good company and good investment is the price that you pay. There are many good companies but very few among them have a strikingly priced. When you look for stocks getting a high quality company is half the job done the other half is to invest on a rightly priced investment.

9. Keep your future safe:

The future keeps on unfolding itself at every step as no one can escape the unpredictability of the time. In order to protect yourself from the unavoidable circumstances invest in those stocks that you find safe that won’t run you at loss. It is advisable to be on the safer side as it always does not mature properly according to your plan plan.

Margin of safety is really crucial and it is not an accident if you fail to earn the profit.

10. Invest in what you know:

There are many investors who try to experiment in the process of investment. Don’t rely on someone else’s advice. Before investing the money do a bit of research work. Do not go with the trend rather consult a proper financial coach.

If you have the proper temperament then you will achieve success in investing. If you have fair knowledge about the market then there is less chance of losing your heard earned cash. And a good investment would secure your future and pave the path towards success.

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June 9, 2010, 8:02 am

I still think that beyond a quality company and future prospects, the current price is still important. Finding the best value for every dollar invested is the name of the game in my opinion. Thanks for posting, very interesting read.

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Captain Obvious
November 23, 2011, 10:59 pm

Couldn’t have hit a little deeper into that one hey? Pretty sure you could have summed up all those “tips” in one hyphenated word: COMMON-SENSE!

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