Investing is always a risky proposition. As money expert Jaspreet Singh noted in a recent YouTube tutorial, “You are never guaranteed to make money when you invest. In fact, you will lose money at some point. So make sure you always do your own due diligence, and never blindly trust some guy on YouTube.”
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While Singh may indeed be “some guy on YouTube,” he has sound advice when it comes to investing — and where to find the hidden opportunities to grow your wealth via investment.
Don’t expect an easy pot of gold at the end of a rainbow, though. As Singh explained in that same video, markets always fluctuate, money is always lost. There is no one single place or stock you can invest your money with guaranteed success.
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The Investment Trio Singh Recommends
There is, however, a methodology that Singh believes will allow you the ability to find the best hidden investment opportunities on your own, without someone else having to direct you to them. This “investment trio” will give you a better understanding of the markets, and where to invest your money.
Have Money on Hand
First, per Singh: “Be Prepared.” That is, have money on-hand and ready to be invested.
“If you don’t have any money to go out and invest, it doesn’t matter what’s going on in the markets, it doesn’t matter if you found an amazing investment opportunity tomorrow,” he asserted. “If the stock market glitched tomorrow and you could buy any stock you wanted for 90%, but you had no money to invest because all of your money is going to pay off credit card bills, well, that doesn’t do you any good because you don’t have any money to actually take advantage of that opportunity.”
So, before anything else, you must be financially prepared and ready before beginning to invest. Pay off that high-interest credit card debt. Systemize your money, allowing some cash for bills, some for saving, some for investing.
Educate Yourself Before Investing Too Much
Second, Singh recommended that you “get educated.” That is, learn the stock market. Understand how to analyze stocks. Whether it is by watching videos by that “some guy on YouTube,” reading books or downloading stock analysis, you need to understand the markets you are investing in.
You need to understand, in Singh’s example, why investing in a cheaper stock, like Walmart’s, might not be as wise as investing in a more expensive stock, like Amazon’s. In addition to cash, you need a knowledge base before investing.
Watch Where the Money Is Headed
Finally, Singh touted “trends,” as in financial and business trends, and your knowledge of them.
“You want to invest into an industry where money is moving into, not where the money is moving out of. You want to invest in an industry that is gonna be worth a lot more money in five years, or 10 years, than today,” Singh said. As an example, Singh noted that understanding obesity is on the rise in America — and as a result, diabetes is as well — led him to investing in companies that manufactured diabetes medication and weight-loss supplements. His understanding of those business trends allowed him to invest and capitalize upon them.
There is no “winner takes all” methodology to investing — some days you’re up, some days you’re down, just like the market. But with this trio of investment guidelines in mind, you will be far better suited to succeed in the investment world than someone who simply blind bets on the markets.
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This article originally appeared on GOBankingRates.com: Money Expert Jaspreet Singh Reveals Where To Find Hidden Investment Opportunities To Grow Your Wealth
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