How to Become as Rich as the Wolf of Wild Street: Investment Guide
16.11.2023
article
- FARIDA (GameBeat's artist)Hello there,
My name is Farida, and today I'll guide you into the world of investments. In this article, we'll cover how to:
- Start investing and what is needed for it
- Determine your risk profile
- Consider the existing strategies and choose a suitable one
- Become more financially literate (as they don't teach us that at school ;))
Introduction. How and why did I start investing?
We live in a rapidly evolving world, in the era of the informational revolution. Each year, we need more knowledge and skills to keep up.
The truth of this world is simple — the more progressive you are, the more you earn.
Thus, the lives of people who want to live in abundance often turn into a race.
The world will never stop, although human resources, unfortunately, are not infinite.
I realized I wanted to secure a decent future: to have a steady, passive income and do what I love. And the sooner, the better. The search for solutions led me to the stock market.
Investing in the stock market is a fantastic but risky way to earn passive income accessible to everyone. Starting to invest now is easy, you just need:
The truth of this world is simple — the more progressive you are, the more you earn.
Thus, the lives of people who want to live in abundance often turn into a race.
The world will never stop, although human resources, unfortunately, are not infinite.
I realized I wanted to secure a decent future: to have a steady, passive income and do what I love. And the sooner, the better. The search for solutions led me to the stock market.
Investing in the stock market is a fantastic but risky way to earn passive income accessible to everyone. Starting to invest now is easy, you just need:
- to be 18+,
- to have access to the Internet
- to have a broker. Banks can act as brokers
- 100 USD on your bank account
Click on the cards and find out how to become as rich as the Wolf of Wild Street
Invest-ment Guide*
*This information is not a personal investment recommendation
Recommendations and Conclusion
Getting started is the most challenging part, but the rest depends on determination. The earlier you learn about finances, the sooner you'll achieve financial well-being.
Technology and online investment platforms have made it easier to monitor and manage investments efficiently, with tools for automated contributions, portfolio tracking, and research. It can significantly reduce the time required for day-to-day investment activities.
Consistency is essential for investment gains, but the exact time spent on investments depends on the chosen strategy. Investing doesn't require daily attention for most people. The level of involvement should be tailored to your investment goals, risk tolerance, and the specific assets or strategies you choose.
Many long-term investors find success in setting a well-thought-out investment plan, periodically rebalancing their portfolios, and then checking in on their investments periodically (e.g., quarterly or semi-annually) to ensure they remain aligned with their goals. Always consider transaction fees to understand the actual profitable selling price.
The strategy I've chosen doesn't promise quick wealth but yields significantly more than bank deposits. It has positively influenced my financial perspective, teaching me how to save and increase income.
Remember that no investment is entirely risk-free, and all investments carry some risk. The key to safe investing is to manage and mitigate risks through thoughtful planning, diversification, and a long-term perspective. Regularly review and analyze your portfolio, and diversify to avoid having all investments in one place. It's also essential to stay patient and disciplined in your approach to investment.
Technology and online investment platforms have made it easier to monitor and manage investments efficiently, with tools for automated contributions, portfolio tracking, and research. It can significantly reduce the time required for day-to-day investment activities.
Consistency is essential for investment gains, but the exact time spent on investments depends on the chosen strategy. Investing doesn't require daily attention for most people. The level of involvement should be tailored to your investment goals, risk tolerance, and the specific assets or strategies you choose.
Many long-term investors find success in setting a well-thought-out investment plan, periodically rebalancing their portfolios, and then checking in on their investments periodically (e.g., quarterly or semi-annually) to ensure they remain aligned with their goals. Always consider transaction fees to understand the actual profitable selling price.
The strategy I've chosen doesn't promise quick wealth but yields significantly more than bank deposits. It has positively influenced my financial perspective, teaching me how to save and increase income.
Remember that no investment is entirely risk-free, and all investments carry some risk. The key to safe investing is to manage and mitigate risks through thoughtful planning, diversification, and a long-term perspective. Regularly review and analyze your portfolio, and diversify to avoid having all investments in one place. It's also essential to stay patient and disciplined in your approach to investment.
Your Must Have
Stable income
Absence of debts/
loans
loans
Six-month financial cushion
Incomes should always exceed expenses: the greater the difference, the better
Save money regularly, even if it's a small amount
Day-to-day financial habits
Tracking income/
expenses
expenses
FINANCIAL FOUNDATION
Reasonable economy
Budgeting
We live in a beautiful time for education, where any information can be found on the internet — educate and explore, read books, and keep track of market news
KNOWLEDGE IS POWER
There are three main options
Ask yourself two questions
«I don't want to take risks,» — low acceptance
If you perceive risk as loss/damage — your profile is conservative.
If you regret missing out on profit — a moderate one.
If you understand that the opportunity for high gains entails losses, it doesn't scare you — an aggressive one.
Or you can take a test from Fidelity to determine a risk profile.
If you regret missing out on profit — a moderate one.
If you understand that the opportunity for high gains entails losses, it doesn't scare you — an aggressive one.
Or you can take a test from Fidelity to determine a risk profile.
«Willing to take risks, but not willing to lose everything,» — moderate acceptance
«Willing to take risks, but not willing to lose everything,» — moderate acceptance
Conservative
Moderate
Aggressive
How do I feel about risk? What do I associate it with?
How will I react if I lose a significant sum of investments?
DETERMINE YOUR RISK PROFILE
Set clear goals answering the question — What do you want to achieve through investments?
For example, retirement savings, real estate purchases, passive income, etc.
For example, retirement savings, real estate purchases, passive income, etc.
Determine the investment horizon, answering the question — When do you want to achieve this?
✈️
Medium-term
Medium-term
1 to 3 years
Short-term
less than 1 year
Long-term
3 years and more
THE DESTINATION AND THE JOURNEY
This strategy involves buying assets and holding onto them for an extended period, disregarding temporary market fluctuations. It is based on the belief that the market eventually grows, and long-term investments will be profitable. The goal is gradual income growth without attempting to outperform the market. It's safer and more stable, suitable for beginner investors.
Buy and Hold (Passive Long-Term Investing)
This strategy involves buying assets and holding onto them for an extended period, disregarding temporary market fluctuations. It is based on the belief that the market eventually grows, and long-term investments will be profitable. The goal is gradual income growth without attempting to outperform the market. It's safer and more stable, suitable for beginner investors.
Dollar-Cost Averaging
This strategy involves allocating resources across various assets: stocks, bonds, real estate, etc. This reduces risks. If one type of asset 'falls,' others can compensate for the losses. For instance, precious metals are considered a protective asset during serious disruptions in the stock market. Gold, for example, allows for income through the rise in the metal's value. However, in peaceful times, its price doesn't fluctuate significantly.
Diversification
This strategy involves allocating resources across various assets: stocks, bonds, real estate, etc. This reduces risks. If one type of asset 'falls,' others can compensate for the losses. For instance, precious metals are considered a protective asset during serious disruptions in the stock market. Gold, for example, allows for income through the rise in the metal's value. However, in peaceful times, its price doesn't fluctuate significantly.
Active Investing
CHOOSE THE STRATEGY
Dividends
Adhering to this strategy involves including only securities from issuers consistently paying shareholders a portion of their profits. There is a risk of dividend non-payment.
Funds
Exchange-Traded Funds (ETFs) encompass a multitude of different companies. If the stocks of one company decline, the fund's value is maintained by the growth of other securities. This simplifies diversification and portfolio management as it's handled by professionals. Additionally, these funds may include shares of large companies that often require substantial investments. Generally, the managing company of the fund does not pay dividends but reinvests them in purchasing new stocks.
Bonds
Buying government or corporate bonds (e.g., Treasury Bonds) for interest payments. Simply put, you lend money to the government by buying bonds and, in return, receive income. It's safer and more stable, suitable for beginner investors.
Sector-Specific Investments
Within this strategy, an investor allocates money to industries expected to experience rapid growth. For example, if an increase in oil prices is anticipated, shares of oil companies are purchased, and so forth. Sector investing involves the necessity to adapt to economic conditions, monitor news and the market, and invest in various sectors of the economy. To utilize this strategy, investors may opt for specialized mutual funds (Pooled Investment Funds). This investment approach is speculative because stock growth typically doesn't sustain for more than six months.
WHERE TO INVEST