Accumulate
wealth
...the
simple way, with a high probability of success
Accumulating
wealth requires long term commitment, planning and execution.
Falter
in any of of these, you will miss the target.
In my opinion,these are the steps needed to start on this long path.
1. Look at your monthly expenses and find out how much you can save.
3. Decide what index fund, ETF you will invest in
This process is a generic advice that fits all all type of investors in general as it provides long term ,relatively low risk wealth accumulation.
In my opinion it especially serves well the beginners ,as they are prone to make bad decisions
in the investing world.
As
time goes on, and one becomes a more sophisticated investor,
that
understands terms like: debt, buy back, net asset value, earning per
share, balance sheet, trends, etc.,may want to take a more hands on
approach to investing.
For
a more hands on approach of creating wealth through investing,
there
are a few principles that a prudent investor may want to follow in
order to lower risk.
1. Keep a percentage of the capital in cash
2.Build your positions in small increments over time
3. Equal weight your positions
4. Impulsive, emotional trades are detrimental to profits