Investing for Beginners – Three key questions

Article Excerpt

Investing for beginners can seem like a real challenge. There are a huge number of investment options to choose from, so how do you evaluate the choices? There are three key questions you should probably ask when you are evaluating any of your investments: 1. Is this a good-quality investment? 2. Is it right for me? 3. What’s the market likely to do and how will that affect this investment? The first question is the most important of the three, and the easiest. You can answer in an objective fashion, by looking at financial statements and other factors that go into our Successful Investor rating system. The second question is a personal matter. How well does the investment fit your objectives and temperament? How does it fit in with the rest of your portfolio? Coming to the right decision here is a little harder, due to the subjective nature of the question. But there always is an answer. The third question is problematic, at best, yet many investors…