By: Joni Boyd
Investing in the stock market can seem daunting, particularly for beginners.
Words like volatility,” “liquidity, and equities swim around, making the waters of the stock market appear murky and treacherous.
But with the right education, mindset, and guidance, anyone can navigate these waters successfully, says Joe Youssef is the Chief Investment Officer with Arias Asset Management.
He spoke to us in an interview to unravel some of the mystery surrounding the share market, providing a comprehensive beginner’s guide to stock market investing.
Joe’s beginner guide to stock market investing
Start learning
We can never underestimate the importance of education and patience when it comes to investing, Joe says. Investing without understanding what you’re investing in is like sailing without a compass.
“You need to understand why you’re investing and what you’re investing in.” he said and explained that an informed investor is better equipped to make strategic decisions and avoid pitfalls.
Education also helps investors understand the risks involved and how to mitigate them.
“If you don’t understand what you invest in, you’re not going to invest in it – they’re my rules.”
Be patient
Long-term investing necessitates patience. It’s easy to become jittery with daily market fluctuations, but it’s important to “have the patience to see that through,” he said.
Stocks are inherently volatile but as Joe points out, “The transparency of shares makes it less risky because you know what it’s worth.”
Pete Burrows agrees, advising against getting caught up in short-term price variations.
“Don’t get too greedy and hang on to investments longer than necessary – think long-term.”
“Education is key and then have the patience to see that through,” Joe said.
Together, these elements help investors withstand the market’s ups and downs while staying focused on long-term goals.
But is it ethical?
Investors often face the dilemma of aligning their investments with personal or religious beliefs.
“Ethical investing has really taken off,” he said.
For instance, many avoid investing in gambling companies, pharmaceutical companies that advocate abortion assistance, and even resource companies.
“The investment policies of religious organizations are a lot more onerous than your typical ethical investment,” Joe said., indicating a heightened level of accountability.
Ethical investing isn’t just about avoiding certain companies, Joe explains. It’s about aligning your portfolio with your values. This alignment not only provides peace of mind but also promotes sustainable and responsible business practices.
“I assist a lot of religious organizations with their investments… I’m very proud of them for doing that,” he said.
This mirrors a broader trend where investors increasingly expect transparency and ethical standards from the companies they invest in.
As Joe says, “You always learn, and we’re no different as financial market experts. Nobody gets it right all the time.
“The stock market definitely teaches you when to cut your losses and to actually not be an ostrich with your head buried in the sand.”
Article supplied with thanks to Hope Media.
Feature image: Photo by Mikayla Mallek on Unsplash
About the Author: Joni Boyd is a writer, based in the Hawkesbury Region of NSW. She is passionate about the power of stories shared, to transform lives.