RESCU
  • Style
    • All
    • Beauty
    • Fashion
    • Home & Auto
    • Luxury & Travel
    • Resources
    • Sustainability

    Essential Guide To Formula 1

    Everything You Need To Know About A Blepharoplasty (eye lift)

    The Art Of Layering Clothes

    How To Decorate Your Home Sustainably

    The Day-To-Day Guide To Maintaining Healthy Skin

    • Beauty
    • Fashion
    • Home & Auto
    • Luxury & Travel
    • Sustainability
    • Resources
  • Substance
    • All
    • Food & Drink
    • Relationships
    • Resources
    • Reviews
    • Science & Innovation
    • Sustainability
    • Wellbeing

    The Importance Of Making Your Home A Retreat

    Essential Guide To Formula 1

    Learn To Love Your Body

    How to Detox after the Easter Sugar Binge

    Healthy Chocolate Recipes for Easter

    • Wellbeing
    • Science & Innovation
    • Relationships
    • Food & Drink
    • Sustainability
    • Resources
    • Reviews
  • Success
    • All
    • Career & Tech
    • Inspirational Profiles
    • Money
    • Property
    • Resources
    • Sustainability

    Upgrading Homes Without Upsizing Debt

    The Me Account: Why You Need to Pay Yourself First

    Five Things You Need To Know About Your Finances

    3 Steps To Heal And Unveil Your Brilliance

    How To Prioritise And Manage Your Workflow Effectively

    • Money
    • Property
    • Inspirational Profiles
    • Career & Tech
    • Sustainability
    • Resources
  • Subscribe
  • About us
  • Rescu Me Academy
    • Courses
    • RESCU Me! Book
No Result
View All Result
  • Style
    • All
    • Beauty
    • Fashion
    • Home & Auto
    • Luxury & Travel
    • Resources
    • Sustainability

    Essential Guide To Formula 1

    Everything You Need To Know About A Blepharoplasty (eye lift)

    The Art Of Layering Clothes

    How To Decorate Your Home Sustainably

    The Day-To-Day Guide To Maintaining Healthy Skin

    • Beauty
    • Fashion
    • Home & Auto
    • Luxury & Travel
    • Sustainability
    • Resources
  • Substance
    • All
    • Food & Drink
    • Relationships
    • Resources
    • Reviews
    • Science & Innovation
    • Sustainability
    • Wellbeing

    The Importance Of Making Your Home A Retreat

    Essential Guide To Formula 1

    Learn To Love Your Body

    How to Detox after the Easter Sugar Binge

    Healthy Chocolate Recipes for Easter

    • Wellbeing
    • Science & Innovation
    • Relationships
    • Food & Drink
    • Sustainability
    • Resources
    • Reviews
  • Success
    • All
    • Career & Tech
    • Inspirational Profiles
    • Money
    • Property
    • Resources
    • Sustainability

    Upgrading Homes Without Upsizing Debt

    The Me Account: Why You Need to Pay Yourself First

    Five Things You Need To Know About Your Finances

    3 Steps To Heal And Unveil Your Brilliance

    How To Prioritise And Manage Your Workflow Effectively

    • Money
    • Property
    • Inspirational Profiles
    • Career & Tech
    • Sustainability
    • Resources
  • Subscribe
  • About us
  • Rescu Me Academy
    • Courses
    • RESCU Me! Book
No Result
View All Result
RESCU
No Result
View All Result
Home Success Money

Discover the three golden rules to investment no matter how much you start with

Reading Time: 3 minutes
Share on FacebookShare on TwitterShare on Pinterest

By Dale Gillham 



Where to invest is often the first obstacle that women looking to invest their money have to overcome. But don’t be deterred just yet, the choice is far more direct that a simple net search would suggest.

Where should you invest?

The most appropriate investments to achieve both income and capital growth are direct shares and property.



Of these two choices, I would advocate that direct shares are the best option for woman looking to capitalise. Why? These options are simple and easy to get into, especially for those new to investing, and unlike property it does not take much money to get started.



Direct share investment is an important part of any wealth creation plan and the great thing is that technology has made it even easier for you to learn how to run your own portfolio.



I found out long ago that women want a practical framework that will allow them to select the stocks for their portfolio that have a higher chance of ensuring they are consistently profitable. Once women have the knowledge, they have the confidence to make decisions, and ultimately they take control their financial futures.



Golden Rule 1

Irrespective of the amount of money you have to invest, you should always take the same amount of time researching your options to ensure you are protecting your capital on each and every occasion. This means that whether you are investing $2000 or $20, 000, you are making the choice to devote your money into something that hopefully will secure you with a profitable return – know that this takes time and every investment should be thoroughly thought-out, no matter what the size of your sum is.



Golden Rule 2

Once you have done your homework, you should aim to have between 8 and 12 stocks in your portfolio when investing in the share market. The trick is to not have lots of stocks with small amounts invested in each. This rule actually lessens your risk and increases your returns because:



• Smaller portfolios are easier to manage and represent lower risk. The more stocks you have in your portfolio the more work you need to do to manage your risk level.



• It is far easier and requires less analysis from a novice to simply select a smaller number of stocks that are rising in price. Consequently, selecting this rising stock gives you the opportunity to increase returns.



• You will have less transaction costs in buying and selling stocks simply because a smaller portfolio will have fewer transactions. It should be noted that every time you buy a new stock a transaction fee is incurred, so the more stocks you invest in, the great outlay in transaction fees.



Golden Rule 3

Never invest more than 20% of your total capital in any one stock, which will not occur if you follow Golden Rule 2. But more importantly, learn how to set a stop loss to protect your capital in the event a share falls in value.



A Stop Loss is crucial, particularly when you aren’t an experienced investor. It is where you nominate a figure to your broker that compels them to sell a share if its market price falls to a certain level below the current price. It protects your profits and importantly helps reduce you loss.



Here I suggest that if a share falls by more than 15% of the price you paid for it then you should sell to protect your money. This rule will help reduce your exposure to risk, while allowing you to achieve good returns simply because you are minimising the amount of capital you could lose at any one time.



Dale Gillham is the director and founder of Wealth Within, an Australian-based company specialising in share market education and independent investment advice.



Dale is the author of the book ‘How To Beat The Managed Funds By 20%’ and Australia’s first and only accredited Diploma of Share Trading and Investment. For information visit www.wealthwithin.com.au



Related Posts

Money

The Me Account: Why You Need to Pay Yourself First

Money

Five Things You Need To Know About Your Finances

Money

Why Your Money Loves A Plan

Career & Tech

An Accountant’s Essential Checklist for Setting Up a Side Hustle

Money

Money Makes the World Go Round

Money

Shining the Light on Your Personal Finances

Money

Finding Financial Wellbeing in Uncertain Times

Money

How Local Property Markets Could Benefit from Federal Budget Infrastructure Spend

Money

Real Estate Report: Regional Hotspots Attracting Remote Workers

Load More

Rescu. TV

Currently Playing

Rescu. Me Academy

Instagram

This error message is only visible to WordPress admins

Error: No connected account.

Please go to the Instagram Feed settings page to connect an account.

Get fashion, beauty, finance, health and love advice from our experts.

Rescu.com.au is an online destination across multiple platforms for the modern woman who is ready to be her own success story. Expert advice, articles and resources to glow up or completely transform your Style, Substance and Success.
Through our deep dive content, clever how to’s, product review, resources including calculators and downloadable assets, and of course our expert panellists, we inform and support our reader to dial up the fabulous in every aspect of her life.

STYLE

SUBSTANCE

SUCCESS

SOCIETY

RESCU. ME ACADEMY

Follow us

  • About Us
  • Advertise With Us
  • Privacy & Terms

© 2020 Rescu. All Rights Reserved

RESCU
  • Style
    • Beauty
    • Fashion
    • Home & Auto
    • Luxury & Travel
    • Sustainability
    • Resources
  • Substance
    • Wellbeing
    • Science & Innovation
    • Relationships
    • Food & Drink
    • Sustainability
    • Resources
    • Reviews
  • Success
    • Money
    • Property
    • Inspirational Profiles
    • Career & Tech
    • Sustainability
    • Resources
  • Subscribe
  • About us
  • Rescu Me Academy
    • Courses
    • RESCU Me! Book

Welcome Back!

Login to your account below

Forgotten Password?

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist