Starting your investing journey with ASX shares can feel a bit like learning a new language.
There’s investment jargon, there are charts, and there’s someone on TV shouting about what to buy, sell, or avoid at all costs.
But here’s the good news: you don’t need to know everything to get started. You just need to know a few of the right things.
So, if you’re new to the world of investing, here are a few simple truths that could make a big difference over the long run.
They certainly would have done for me if I had known at the start of my own journey with ASX shares.
Time is your superpower
You don’t need a six-figure salary or a finance degree to become wealthy from investing — you just need time.
The longer your money is invested in ASX shares, the more chance it has to grow through compounding.
Investing $100 a month might not seem like much now, but over 30 years it can snowball into something substantial. Not because of luck, but because of patience.
For example, $100 a month compounding at 10% per annum (which is in line with historic averages) would turn into over $200,000 in three decades.
You don’t have to pick the perfect stock
One of the biggest myths beginners fall for is that you need to find the next big thing. Sure, it would be amazing to find the next Pro Medicus Ltd (ASX: PME) while it is still in its infancy, but the truth is that you don’t need to be a stock-picking genius to be successful.
In fact, one of the smartest ways to start is with an exchange-traded fund (ETF).
ASX ETFs give you exposure to dozens (sometimes hundreds or thousands) of companies in one go. You can buy a slice of the whole ASX 300 index with the Vanguard Australian Shares Index ETF (ASX: VAS), or tap into US tech leaders with BetaShares Nasdaq 100 ETF (ASX: NDQ).
This means that you don’t need to guess which company will win — you’re backing the market itself.
Dividends are more powerful than you think
A lot of beginners focus on share prices, but dividends — regular cash payments from companies — are a big part of long-term returns.
Some ASX shares pay generous, fully franked dividends that you can reinvest to buy more shares, building your portfolio faster. Think of it as getting paid to be patient.
Doing nothing is sometimes the best move
It is tempting to constantly check your ASX share portfolio, especially when markets get rocky. But one of the best things that beginner investors can learn is to stay the course. The market goes up and down — that’s normal. What matters is sticking to your plan.
Selling at the first sign of red can mean missing the recovery that follows.
Foolish takeaway
Investing isn’t about being perfect. It is about being consistent, thinking long term, and keeping it simple.
If you can do that — even with small amounts — you’re already ahead of most people.