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Tips for a novice investor

Top of the list is dollar-cost averaging, which will ensure that you buy low and sell high

Published on May 4, 2014 11:54 AM
 
-- ST ILLUSTRATION: ADAM LEE

My nephew and two of my nieces are taking their university final examinations.

They already have jobs waiting for them when they graduate, and I wish them every success in getting top grades.

As I watched them chattering about their future jobs and the freedom that comes from earning some serious money, it reminded me of when I finished college and started on my work-life journey nearly 30 years ago.

For many people, the happiest phase of life is being in school, though the over-riding worry is to pass examinations.

 
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Background story

Beating the odds

I agree fully with US financial portal Motley Fool for placing this tip right at the top of its advice to novice investors: Dollar-cost average for your entire life and you'll beat almost everyone who doesn't.

What this means is to invest the same sum in the stock every month, or even consider buying more of it when the market is down and less when it is up. Over the long term, this will ensure that you buy low and sell high.

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