As a mathematician and physicist, when I look into the seemingly unpredictable world of finances, I can’t help but be captivated by the opportunities offered by investing in the stock markets. After extensive research and careful weighing of potential risks, I have decided to make a foray into Wall Street’s profitable markets.
In readiness for my journey, I attended seminars and webinars that gave me an insight to the financial markets. It was during this time that I learned about the pros and cons of investing in stocks. As with most investments, risk is an integral part and I needed to understand the many factors that could influence the volatile stock markets. I also had to understand the different types of securities that are available, such as stocks, equity, preferred stock, and bonds. Furthermore, I had to familiarize myself with the terminology associated with investing, becoming familiar with terms such as price-to-earnings ratio (P/E), portfolio diversification, hedging of funds, and margin of safety.
I chose to start investing in safer stocks, such as public utilities, consumer goods, and healthcare companies. As these companies are established, their stocks tend to have a much lower risk. My familiarity with the US stock markets allowed me to make more deliberate choices when selecting stocks. I first monitored stocks for a few weeks before making my decisions to buy.
My approach to investing has understandably been cautious. I tend to diversify across sectors and invest in blue-chip stocks for safety. I have also adopted some strategies that have worked for me in the past, such as dollar-cost averaging and following money flows. I periodically evaluate my investments against the broader market and consider alternative strategies if I am not achieving the returns I want.
My journey with investing has been a rewarding experience so far. My research has helped me gain a better understanding the many complex aspects of the stock markets, while also managing to keep my risks in check. It has been an enlightening experience that I look forward to continuing as the days go by.