The mindset behind investing is to keep your investment simple and consistent. Do not stay with just one asset, let them be a mixture of both mutual funds and exchange-traded funds, then make it interesting by keeping single stocks with your assets, about 10%. Being an investor that will succeed is not just based on the choice of stocks and exchange-traded funds you make, it also depends on the following;

  • The total mix-up of assets(both bonds and stock) and cash you have in your portfolio.

  • Choosing and staying with an automatic investment plan. With this, you will prevent decisions that are emotional and may cause you terrible losses, mistakes like selling when the market value is down.

Mutual funds

This is an investment that has professional management and puts your money alongside that of other investors. Then those that are in charge of managing the funds use your money and that of others to buy securities for you and others.

For starters, get familiar with the business by investing first in mutual funds or exchange-traded funds, before going into buying bonds and stocks individually. You may have a tip off about a local playground equipment company that are doing extremely well but is it a good idea to put all your eggs in one basket. What this will do for you is this; you will start out investing in a wide range of stocks and bonds in just one transaction, instead of trading all individually all by yourself.

These investments are a broader kind of investment and this makes them very safe and not very expensive. With mutual funds or ETFs, you will either pay no trading commission if you buy directly from any company that trades mutual funds or you will just pay a single trading commission, but you are investing in a broad portfolio. This is not the case when you are paying more than a single trading commission to buy numerous stocks or many stocks that are different. Of course, you will pay more trading commissions.

The reason I advise buying directly from a mutual fund company is that you will not have to pay any trade commission unlike when you buy from through a brokerage account. Examples of mutual fund companies are E*TRADE, You Invest, etc.

Bonds

They refer to securities that raise capital for others. They are very good ways to take advantage of your investments, with bonds, you have your investments leveraged against other entities and their success. It can be a corporate bond, treasury, or municipal bond. New companies, local projects, and even the government of the United States are financed with bonds. Government bonds are called T Bonds and they are almost risk-free. A very good example of bonds to invest in are Worthy Bonds. Your funds in Worthy Bonds are used to fund businesses in America, they choose businesses that they will fund, and the businesses that they fund are businesses that have their liquid asset value greater than their loan amount. They give 5%returns and their policies make them operate at very low risks.

Robo Advisors

For first time investors, I advise the use of Robo-advisors. They provide you with very helpful advice about your investments, using algorithms. With these financial advisors, you will easily know what to do about your investments.

They are very popular, they have become popular over the years because they have helped a lot of people in making investments and assessing their investment. The apps are easy to use and they work at low cost and stress. Their investment minimums are also lower than that of standard financial advisors. Also, they operate on lower costs in comparison to other firms that people usually operate and there is no investment broker.

Stocks

You can decide to venture into Do It Yourself(DIY) investment, and you go into buying individual stocks. This is not a bad idea, but surely not the best for a beginner. It is advised that you should test the waters of investment with bonds and mutual funds, then go into individual funds when you have gotten your leg wet. Even if you want to go into stocks as a beginner, do not go all out once. I recommend that you be gradual about it as a beginner, invest a part of your portfolio, not more than 10% of your entire portfolio, then when you are sure of how the game is run in the stocks market, you can start putting in more of your portfolio.

Before you venture into stock, make sure you have studied wide about value investing. In value investing, a lot of work should be done to have a piece of good knowledge on how to develop the mindset of buying and holding.

All I have said is in no way to get you scared of the stock market. The stock market is one of the best places to grow your money if you play your cards well. Of course, no wise investor will invest money in a venture that he doesn't have clarity about. Hence, a lot of research for the stock market is needed for maximum profitability.

At this point, I will like to mention some of the best brokerages that you can start a DIY investment with. Let me mention this; it is a DIY investment because you can start a stock investment and be successful, like do every single thing yourself without consulting anybody. You see again why you have to be well-read in this kind of investment. The fact that this kind of investment can be done without literally consulting anyone is the reason some people like such investment.