5 ways to get started with investing in 2024
Looking to make a change to your financial fitness in 2024? We take a look at how starting your investing journey can help.
With the new year just around the corner, many people are looking for ways to enhance their financial health into 2024. For some, investing is proving to be a popular option. The ASX Australian Investor Study suggests that 2023 saw the most on-exchange investors since 2010.
With these trends in mind, we recently wrote about how investing can exercise your financial muscles. But if you haven't invested before – or have just been out of the game for a while – where should you get started?
We spoke to Josh Gilbert, market analyst at eToro, to get his insights into some of the ways that you can get started with investing in the new year.
Learn more about investing with eToro
1. Pick the right trading platform for your needs
Picking a trading platform is one of the most important decisions you'll make as a new investor. It influences the markets you'll have access to, the fees you pay and the types of services you can leverage.
Gilbert points to the eToro trading platform as an example.
"The eToro platform gives investors access to more than 3,000 different financial assets, including stocks, crypto assets and ETFs," says Gilbert.
It also currently features 16 markets from around the world, along with a range of news, investing tools, analysis features and a social community of investors – we'll talk more about some of them in a minute.
Although some investors use multiple trading platforms (generally to gain access to specific markets or features), one is usually enough for the starting or returning investor. This will help you avoid doubling up on fees.
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Read more…2. Put an investment plan in place
Long-term, successful investors don't invest at random. Rather, it's the result of practice, discipline and having a structured plan in place.
So before you start investing, you should have a plan ready, Gilbert says.
Plans help you determine your strategies, minimise your losses and make decisions about what sort of portfolio you'll develop.
Each investor's plan will look somewhat different – after all, everyone has different goals and desired outcomes from investing. But there are a few common threads, as Gilbert points out.
"Emergency budgets, goals and strategies are all important steps that investors should take before getting started," says Gilbert.
The level of detail in a plan can vary quite a bit from investor to investor. It's not unusual for new investors to start with a somewhat loose plan that's refined over time as they experiment and develop their skills.
Plans don't need to stay static, either. Although the investing life has its ups and downs – and so does the market – a plan that is consistently not yielding results needs to be reassessed.
It's worth checking in at least once every 6 months to see how your results are tracking and whether your plan needs to be adjusted.
Start trading with eToro
At the moment, eToro is offering new members the chance to get started with a demo trading account. When you sign up, you'll be able to develop your trading skills and learn from expert traders throughout your trading journey.
💲Get started with a $100K demo account
Discover how you can get your investments to grow, without the risk of practicing with real cash. With your virtual account pegged to real-world values, you can measure your results with accuracy and easily keep track of your gains and losses.
📈 Practice trading strategies
Get a feel for your risk appetite, style of investment and preferred industries. Test your strategy across a wide range of assets, including stocks, ETFs and crypto. Learn from trading experts and apply their tips to create better outcomes.
🪙 Use your results as a springboard for real-world results
eToro's demo accounts use the same interface as its regular trading platform. So when you're ready to start trading for real, you'll already have the knowledge to navigate the interface and apply your strategies.
3. Practice your strategies before you put them into use
Investing can be a risky prospect; it's not something that is well-suited for everyone.
However, there are ways to reduce the risk involved. One is to use a demo account, such as those offered by eToro. eToro's demo account provides you with $100,000 of virtual funds, which can then be used in a simulation market tied to real-world values.
According to Gilbert, using a demo account can be an effective way to help you feel at ease with your chosen trading platform and the markets without putting funds at risk in the process.
"Starting with a demo account allows investors to get a feel for capital markets before committing their own capital," says Gilbert. "This means understanding how financial assets trade and react to market events and how to buy and sell assets."
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Read more…4. Don't feel like you need to start investing from scratch
People often start investing because they want to own part of a particular company or have an interest in a particular industry.
That can be a good way to kick off your investing journey, but it can be tricky to know where to go from there. Additionally, not everyone has the desire to proactively build and manage a portfolio from scratch.
The good news is that there are solutions available. Many trading platforms allow you to opt for pre-made portfolios, often designed with the passive investor in mind.
Gilbert points to eToro's SmartPortfolios as an option.
"Smart Portfolios are investment vehicles that bundle together a collection of financial assets," says Gilbert. "These portfolios can help investors invest passively without dedicating a huge amount of time to research and analysis."
The assets in these portfolios, Gilbert explains, are picked and given a predetermined strategy. Each has a thematic approach, which is designed to encompass a range of considerations, including innovative investments, diversification, minimising risk and current market opportunities.
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Read more…5. Make use of the resources around you to upskill
Part of being a good investor is learning to spot opportunities around you, and that includes educational ones, too.
Seeing other investors in action allows you to make more informed decisions, spot trends, and sometimes, see what you should avoid.
Gilbert notes that the right trading platform can be quite a useful resource for learning from other investors and enhancing your skills.
"eToro is the world's largest community of traders and investors, numbering more than 30 million from more than 100 countries," says Gilbert.
"The eToro News Feed operates just like that of any social network, enabling traders and investors to interact, share ideas, insights and trading strategies."
Additionally, features like eToro Academy provide access to educational courses, webinars, podcasts and videos.
So by leveraging the resources that you've already got in front of you, you can start the process of upskilling.
Learn more about investing with eToro today
Learn more about trading with eToro
| Name | Product | Price per trade | Inactivity fee | Asset Class | International | ||
|---|---|---|---|---|---|---|---|
|
eToro Finder Award |
 |
$0 |
US$10 per month if there’s been no log-in for 12 months |
ASX shares, Global shares, US shares, ETFs |
Yes |
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Past performance is not an indication of future results. Trading history presented is less than 5 complete years may not suffice as basis for investment decision.
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