I enjoyed investing in shares last year. My share portfolio is not big, so easily doubled and with a definite plan on how to do it, I will have doubled my share portfolio by September 2014.
How do I do it?
I keep a constant eye on the market so I know which shares to buy now, to hold or to sell. I keep informed about companies I think would be good investments. I look out for bankruptcy rumours to avoid bad companies and look for businesses which are expanding, growing and improving. I stay aware and on top of my investments.
My step by step plan is this:
- Invest in blue chip shares. I buy for the long term and have no intention of looking for a quick buck on the share market. That is not my style.
- Research. I know how the company is performing and don’t invest in any company that seems unstable at all.
- Use excess money. A few ways I get money outside of work are government lump sums like the annual FTB payment of up to $726.35 for each child and the school kids bonus, child support, which is rarely paid and just finding money on the street. This ‘bonus’ money would more than double my share portfolio. Some will argue child support should be used on my kids. Since I pay for everything already, it is going straight to them. It is just like I have loaned the money, with no expectation of repayment, but when I get repaid it becomes my money again.
- Purchase. When I decide on the shares and have the money, I will purchase. My main goal is to save a house deposit and only excess money is for shares. I do not expect to purchase shares in the first half of the year.
Do you invest in shares? What method do you use?