You don’t need to be a finance guru to create wealth – stock market investing is more accessible than ever. With user-friendly platforms and learning resources, anyone can begin investing. Here are some strategies to grow your nest egg.
Building wealth through the stock market is not rocket science, but it does require strategic planning, discipline, and adaptability. Whether you’re just starting or looking to refine your approach, Webull Australia CEO Rob Talevski shares his insight into how to navigate the investing landscape effectively.
1. Strap in – investing is a long-term game
“A lot of people, especially younger generations that have seen others reap huge earnings on crypto and things like that, have this misconception that if they invest X, they’ll have multiplied their money by the end of the year,” Talevski says.
But, he stresses, speculating and investing are two different beasts. “Speculation is very risk-on, and if you’re trying to turn $100 into $1000 in a short space of time, there’s that risk you’re going to lose,” Talevski says. “Investing for wealth is a long-term play.”
2. Start somewhere
Talevski says many people are hesitant to try their hand at investing as they believe they don’t have enough money to make it worthwhile. “Even if it’s small, start somewhere and be regular at contributing,” he says. “Over time it’ll build up.”
If you’re investing in Exchange-Traded Funds (ETFs), Talevski recommends exploring any auto-invest features the platform has. “Webull has just launched the ability to do regular investing. “You could pick a weekly, fortnightly, or monthly interval where you nominate a set amount to invest each month to a particular ETF or individual stock – it’s sort of like a savings plan but using securities to do it.”
3. Build your financial literacy
You don’t need to be an expert, but Talevski recommends getting in the habit of staying informed about the markets. “It could just be a quick five-minute look at the newspaper in the morning, or reading any financial media,” he says. “It just keeps you across what’s going on and it exposes you to investment ideas as well.
“Reading and understanding the world you’re investing in will help improve your skill set and ability to look for opportunities. “If you’re not looking for opportunities, you’re going to find it difficult to improve your investment strategy over time.”
4. Diversify
Diversification is a key principle of investing. If you’re passionate about investing in a particular sector or you’ve had a tip you think will be the next Afterpay, Talevski says get on board, but he recommends incorporating it into a diversified investment strategy. “Having broad exposures (to the market) as well as concentrated exposures will help soften or smooth out any falls in particular stocks or in a particular market,” he says.
5. Understand different asset classes
To make informed investment decisions, Talevski says you should understand the basics of different asset classes. Single stocks, bonds, ETFs, and cryptocurrencies each have different risk profiles and potential returns.
Although ETFs are often a great starting point for exploring various asset classes because they can offer exposure to all of them, Talevski advises if you feel strongly about a specific asset class, include it in your portfolio. “If you’ve got the risk profile, and you’re keen to explore crypto, go for it – don’t just limit yourself to a particular class,” he says.
6. Leverage technology
Talevski says investing has never been easier, thanks to technology. Online platforms and mobile apps offer convenient access to ETFs and other investment products. These tools also provide features like portfolio tracking, automated contributions, and performance analysis, making it simpler to stay on top of your investments and adjust your strategy as needed.
“When I first started in the industry more than 20 years ago, you had to physically go buy the papers and read three or four publications each morning to stay across the markets,” he says. “The great news is, anyone now, regardless of what your vocation is – whether you’re a plumber or a teacher – you’ve got all that information at your fingertips in one app.
“It’s something that Webull prides itself on – you have the ability to make informed decisions quickly, and you couldn’t do that before.”
Start trading on the US and Australian share markets today! Download the Webull App for free.
This article was developed in collaboration with Webull, an advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
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