New year, new goals! Now is the ideal time to get a head start and take action if you put off getting your finances and investments on the right track last year. You’ve come to a point where you feel overwhelmed with all the information you’ve taken in, so now it’s time to move forward.

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The stock market in the current year is expected to offer a major opportunity for the next ten years. But it's important to remember that the previous V-shaped recovery after the COVID-19 pandemic was not founded on solid economic fundamentals. But the global economy is now in a better position to experience a true recovery.

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1. Prepare your watchlist

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If every company in the world is currently being sold at a discounted price, which 15 companies do you believe have the potential to become at least three to five times larger over the next decade? Take note of them, start researching them, and read a lot about them.

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2. Get more cash ready

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Since opportunities are expected to arise, you want to make sure you have more to invest too! Invest big when opportunities are huge!

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3. Start investing now!

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Hold on a moment. Shouldn't we wait for the market to hit its lowest point before investing? 

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Well, it is impossible to know exactly when the market bottom will be reached. 

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A better strategy is to focus on your watchlist and begin accumulating undervalued companies. If you wait too long to start investing, you may miss out on opportunities and end up "waiting" for another decade. Additionally, you may lose your ability to take action when the market does hit its bottom.

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4. Pacing your investment

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When adding a company to your portfolio, it is recommended to do so in three phases. For example, if you want to invest 10% of your $30,000 portfolio in Amazon, your budget for purchasing Amazon stock would be $3,000. Invest $1,000 first, then wait to invest the remaining $2,000 until you know how the market is performing.  

This approach can help you psychologically as an investor, as it reduces the risk of investing all of your money at once and then feeling regretful if the market dips. 

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However, if you are a seasoned and confident investor and you believe that it is the right time to invest the entire $3,000, knowing that you are comfortable with the potential market dip, then go ahead.

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Time to Take Action

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Take the example of a woman who took the pandemic as an opportunity to start taking charge of her finances and dipped into investing. Sabrina Scull overheard two men at a dog park discussing WallStreetBets and Gamestop in early 2021. She downloaded the Robinhood app and used her $1,000 to invest. She did her own research and invested in companies she believed to be strong instead of those mentioned on the subreddit, WallStreetBets stocks. Since then, she has seen an increase of 7% on her investments.

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Get access to a FREE masterclass now to take your investing to the next level!

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Disclaimer:

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This article is for informational purposes only. Do not consider any such information or other material as legal, tax, investment, financial, or other advice.

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