7 Ways to Invest Like a Pro

Welcome to Actionable Insights, a newsletter exploring health, mindset, and productivity!

In This Issue:

  • 7 ways to invest like a pro

  • Tool of the week - Finny

Reading Time: 3 minutes

7 Ways to Invest Like a Pro:

Investing is the key to building wealth — it allows you to take advantage of compounding.

But 45% of Americans regret that they didn't invest more money.

Here are 7 lessons I apply when investing.

1) Play the long game

Invest early and hold on for decades.

The S&P 500 returns 10% per year on average.

2) Diversify

Don't put all your eggs in one basket.

Add a mix of stocks, mutual or index funds, bonds, and real estate.

3) Seek out dividends

Dividends pay you regardless of the stock's performance.

My favorite dividend stock is VDIGX — Vanguard Dividend Growth Fund Investor Shares.

4) Use psychology

People invest based on feelings.

Read the news to keep up with current psychology trends.

5) Avoid day trading

Stick to long term investing.

Day trading requires a lot of time and skill.

6) Do your research

Don't follow the latest trend.

Use websites like Morningstar to find strong investments.

7) Buy low and sell high

People panic and sell when stock prices fall.

If you believe a stock price will rise, buy it when the price is low.

Investing TL; DR:

  • Play the long game

  • Diversify

  • Seek out dividends

  • Use psychology

  • Avoid day trading

  • Do your research

  • Buy low and sell high

Tool of the Week — Finny:

Finny's newsletter, The Gist, provides game-based personal finance education for working adults.

Twice a week, Finny provides simple 5-minute breakdowns of top money trends, personal finance, and investing tips delivered right to your inbox - for free.

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Final Note:

I'm excited to start this journey of writing a newsletter that aims to improve your life. I look forward to sharing valuable insights on health, mindset, and productivity every Tuesday and Thursday.

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Stay consistent,

Simrun