Best Practices for New Investors

New investors are constantly on the lookout for that edge that will help them create explosive wealth gains in the stock or bonds market. Every investment is an opportunity to learn and grow, and build a successful portfolio at the same time that rewards those efforts financially. But new investors can find it difficult to parse through some of the antiquated advice and trivial tidbits of knowledge that are out there.


Building your knowledge base takes time and energy, but with a bit of research and a dedication to your financial future, you can begin investing in great financial vehicles that will stabilize your gains long term and see your money grow rapidly.


Look for an initial structure to gain a foothold.



Beginning with rock-solid foundations is essential to creating long-term wealth potential. Buy into blue-chip stocks and underpin that with bond or CD options to create stable — albeit slow —growth over the long term. This is the best way to set yourself up to take expanded risks with other streams of capital. Risk is the early investor’s best friend. As a young investor, your money may see doubling events five to six times over the course of its lifetime. This means you have time on your side, time that will energize your portfolio and spark additional growth.


But risk without research is a fool’s errand. In order to take full advantage of the possibilities before you, you need to understand the potential for profit and the possibility of a collapse in order to make smart decisions with your money. Investing in dividend aristocrats and exempt-interest dividends paying mutual funds is a great way to learn the art of due diligence and provide your capital a safe place to grow as you become a more responsible investor. Taxpayers love exempt-interest dividends because the payouts that hit your brokerage account every quarter are exempt from any additional tax burden. This makes these asset classes an easy way to grow your money without having to worry about any reporting obligations that will take a percentage off the top come tax time.


Investment opportunities that short circuit these additional hassles are a new investor’s dream come true. You can focus on learning the ins and outs of the stock market, instead of the tax implications that can come along with investment opportunities in this asset class.


Branching out into new territories.


Once you have mastered the risk versus safety mixture in your stock portfolio, it’s time to branch out into other investment opportunities that offer increased growth potential. The stock market is a training ground for investors to learn the ropes. Understanding market principles, factors that drive price action, and the ability to project data into hypotheses about market movement are the key takeaways from this type of investing. But to really increase your net worth you need to take those lessons and apply them in other spaces.


Real estate and the commodities markets are primed for portfolio explosion once you have mastered these crucial lessons. Using a platform like Yieldstreet to interact with these investment opportunities brings you closer than ever to the huge earners — so much so that many are often driven to ask themselves “is Yieldstreet legit?” These alternative investments play by the same market rules as the stock market, supply and demand curves, and price action due to seemingly extraneous circumstances are baked into any trading model. Learning the ropes with the help of an investment platform and your own outside research is always a recommended step forward.


Wading into the market is something that everyone should do. Investments are the only way to see your money really work for you. Learn your craft and apply it to the best opportunities that you can find.

Written By
Elena Hicks
Investment Advisor | Contributing Writer
Elena Hicks

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