It is one thing getting a plan and another thing committing to it.
Most people just get up and start investing, buying stocks they hear of in the business news. I got a call one day from a friend who said, Hey Patrick, I just heard BOPP made very huge gains last year on the market and was the best performer for 2017 so I would like to buy. So I asked, did you hear of their performance in 2018 or how they are expected to do in 2019? He said no, then why are you eager to buy only because of historical performance? Not to say BOPP is not a good stock to buy but you cannot rely entirely on historical performance to make equity buy decisions. As much as the future depends on the present and the past, the future is not the past and has much more that you can hardly predict.
In building a stock portfolio, I recommend you set a renewable target you want to reach. I know a friend who wants to reach GHS100,000 in 3 years time. Others go like they just want to invest GHS500 a month in the stock market without touching it for 10 years. Talking of touching it, you can only building a sound stock portfolio when you invest with excess cash and not be selling out or withdrawing too quick.
Back to Target setting, decide before you begin and write the Plan down. It can be in your trade or equity journal- where you can write all other plans so you can refer and revise from time to time.
Personally, I set a GHS 1000 a month investment goal from the beginning and out of this, GHS600 goes into the stock market or equity funds depending on the particular activity on the market. I started with the percentage rule where I put 10% of all income into stocks but it became tough. I could not keep up to it hence I chose what I can commit to – which is an amount. When you agree on your plan make sure you stick to it.
If you have a problem stashing money away, I recommend setting a standing order at your bank to fund your investment accounts so you don’t have to be going through the stress which might make you lose track of the goal or plan. With my experience, it’s easier to fund my account since I work in a brokerage firm – Republic Securities. For you, what I will suggest is, make it easier through the use of the following platforms;
Setting a SMART financial goal: