Choosing your first investment

Today’s video is all about how to choose your first investment. It might feel like a daunting task, but it doesn’t need to be. We’ll cover ‘Paralysis Analysis’ and how it can be avoided, talk about goal setting and delve into risk, amongst other things.
⌚ Timestamps:
0:00 - Intro
0:46 - Narrow down the choice
3:47 - What are your goals?
5:05 - What is your risk tolerance?
7:27 - Risk Questionnaire
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Some example risk questions as mentioned in the video:
1. Imagine you have invested £100,000. Which of the five scenarios below would you want for your investment portfolio?
Best-case increase (£) Most likely result (£) Worst-case losses (£)
Scenario 1 13,000 3,000 -11,000
Scenario 2 15,500 4,000 -12,500
Scenario 3 20,000 5,000 -16,500
Scenario 4 24,500 6,000 -21,500
Scenario 5 28,000 6,500 -25,500
2. Investing involves a trade-off between risk and returns. In the past, investments with higher returns have been associated with greater risk and chance of loss. Whereas cautious investments that have had a lower chance of loss also have achieved lower returns. Which of the following statements best describes your attitude to risk?
- I am most concerned with risk. I am willing to accept lower returns in order to limit the risk of loss.
- I am willing to accept some risk and chance of loss in an effort to achieve modest but somewhat higher returns.
- I am willing to accept moderate risk in order to achieve higher returns. Reducing risk and increasing returns are equally important to me.
- I want to achieve strong returns on my investments. I am willing to accept somewhat higher risk and chance of loss.
- I am mainly concerned with getting the highest possible returns on my investments. I am willing to accept significant rises and falls in the value of my investments and a significant chance of loss.
Here’s the link to our ‘How to Pick Stocks’ Video mentioned at the end:
• How to pick stocks?
Our Investing 101 series covers the fundamentals of investing and tries to bring you the basics to build a solid foundation. Let us know in the comments about future topics you would like to see covered in these videos.
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#Stocks #Investing #Investing101 #Trading212 #Trading #equities
When investing, your capital is at risk. Investments can fall and rise and you may get back less than you invested. The information contained within the video was correct at the time of recording but may have since changed.

[@DamienTalksMoney]

Such a good video this!

[@ThatFinanceShow]

Thanks mate!

[@DamienTalksMoney]

@@ThatFinanceShow This is a trading 212 video mate why you saying thanks?

[@NightElff88]

@@DamienTalksMoney Awkward 😂

[@creamsoda5492]

@@DamienTalksMoney who's gonna tell him...

[@sabrinam1969]

Omg youre HILARIOUS! Great video. Very charismatic.

[@lopezjuan316jl]

I've some stocks down 40+%, I invested 40€ in CocaCola and it loosed value, etc I'm feeling like I'm loosing money but what I actually try to think is that I'm not because that is not my money anymore, I invested what I could afford to loose so what's the trouble? I repeat this until I'm more confortable with the situation

[@NightElff88]

Pretty good video packed with wisdom!

[@ThatFinanceShow]

Thanks buddy

[@mosnicolae1678]

First 3 minutes were a total waste of time. Sorry.