Great Investment Ideas For 2021

Companies / Investing 2021 Feb 21, 2021 - 03:32 PM GMT

Buying and selling shares can be a profitable endeavor but it may depend on the way we approach it. Although there are a lot of ways through which we can spend all our free time, I think 'minimalist investing' is among the most appealing if not the top. We, here are some ways you can make it less of a burden in 2021.

Minimalist investing 101

Concentrating on a few holdings could be the best way to start on this.

Naturally, the number will vary from person to person. With that said, we all have a limit on the amount of time we can allocate to researching, buying, and monitoring our investments. For example, my ISA profile usually does not have more than 20 stocks. Anything that exceeds this may make me overwhelmed. Again, very many stocks may dilute my wins which I expect should be massive!

For other people, 20 different companies may feel like a lot. When this is the case, they may prefer buying few cheap, exchange-traded funds. What these do is they track an index for example the FTSE 100, offer instant diversification, and need next to no 'maintenance'.

Investor experts predict that 2021 will see many opportunities for investors. Read more in this article: Inflation: Is this the real thing?

Leave the app

Recently it has been a lot easier spending too much time staring into a screen unnecessarily. That's why I have decided to delete all apps related to investing from my smartphone. The reason behind this is it makes me less compelled to look at my portfolio. And this makes my home screen as well as my brain less cluttered.

Without a doubt, removing these apps may initially feel uncomfortable but persistence is vital to ditch any habit. That's the same thing needed to keep unhealthy food away from home. By removing the 'cue', which is the app icon, I reduce the probability of such behavior (constant checking of the portfolio) happening. Setting daily time limits on app usage may be less effective.

Automate processes

In the many years I've ventured into investing, I have learned that I can't consistently time the market. As a result of this, a huge process of my buying is done automatically on the same day each month through my broker's regular investment scheme. This plays a huge role in eliminating emotion from the process. Better still, it helps to save money. Various online share-dealing platforms usually don't charge any commission on monthly purchases! With time, this may hugely impact my returns.

There's also another idea of minimalist investing - automate savings. It usually involves asking a bank to transfer a specific amount to a Stock and Shares ISA each month. Besides eliminating the need to do this manually, planning this transfer to take place the day after receiving payment also makes sure the future is prioritized rather than spending uselessly. There's a saying that goes, "Pay yourself first".

Don't read everything about it

Another way of adopting minimalist investing techniques is by reducing the amount of news consumed.

However, this idea is easy to say than actualize during this pandemic period. But, in my view, the important word remains to be 'reduce'. Trying to avoid viewing any news in one's life is difficult and may also cause anxiety. The best thing is to be selective.

For me, this means checking the news from two or three reputable sourcing and taking everything else as a rumor. If this seems restrictive to you, you may try avoiding your regular news binge until when the market is closed.

By Mark Adan

MarkAdanSEO@gmail.com

At Animuswebs.com, we specialise in content-led Online Marketing Strategies for our clients in the Marketing, Finance, Business industry and other sectors. With our professional writing team and our superb content creation programmes we achieve great marketing successes for our clients.

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

Only logged in users are allowed to post comments. Register/ Log in

The Market Oracle is a FREE Financial Markets Forecasting & Analysis web-site.
(c) 2005-2024 MarketOracle.co.uk (Market Oracle Ltd) - Market Oracle Ltd asserts copyright on all articles authored by our editorial team and all comments posted. Any and all information provided within the web-site, is for general information purposes only and Market Oracle Ltd do not warrant the accuracy, timeliness or suitability of any information provided on this site. nor is or shall be deemed to constitute, financial or any other advice or recommendation by us. and are also not meant to be investment advice or solicitation or recommendation to establish market positions. We do not give investment advice and our comments are an expression of opinion only and should not be construed in any manner whatsoever as recommendations to enter into a market position either stock, option, futures contract, bonds, commodity or any other financial instrument at any time. We recommend that independent professional advice is obtained before you make any investment or trading decisions. By using this site you agree to this sites Terms of Use. From time to time we promote or endorse certain products / services that we believe are worthy of your time and attention. In return for that endorsement and only in the cases where you purchase directly though us may we be compensated by the producers of those products.