Investing in financial assets can lead to serious complications for someone almost completely unknown financial ground. The losses generated temporary drops some actions are of future distrust of young investors.
If you have your money invested in some kind of fund, analysis should be lighter. Much of the profitability to generate your money will not be achieved by your effort, but by the ability to have your broker or financial institution to “play” with your money.
But the expectation is totally different when it is you who has the decision on actions to invest. To achieve an auspicious return on your individual investment, we recommend the following.
- Not be based on subjective criteria for investing. Consider a company will have high returns only because it is a mark of our choice or because someone said it was a highly reliable company, is a complete mistake.
- Believing that an action is profitable only because in recent months has grown is another fatal mistake. Rest assured that there will be as many investors who think the same as you. Be careful. Better to do a fundamental analysis of stocks for investment than technical analysis.
- It may also occur otherwise. Because previous studies of investment that we have not given results, leaving aside the research. We invest without sense, and most likely it will only get numbers in red.
- Sell when we are in loss is good, but make this practice a routine can be extremely harmful to our finances. In fact, it is known that long-term investment in an action generates higher returns to be changing the destiny of our money for every action we want.
- Do not invest all your money in one or two actions. Investigate a bit and diversify, so the risk level of your investments is reduced.
- Learning from our mistakes is the right way in the field of financial investment. Blind us and think that action will recover over time believing that our decision was not wrong, is not a smart strategy.
- Never buy in bulk. The fact that acquaintances or your agent broker suggest that you invest in such shares, as if these were “in” and not force you to do so. Seek other sources before making the purchase.
- Invest in new or emerging sectors is a total gamble. Many have believed that the actions of emerging sectors are the way that will lead to financial success, but the fact is that there have been emerging and high growth companies, there have been others that were never developed and disappeared with the passage of years.
Finally, there does not pay attention about which to invest there is necessary to make use of the money that “remains us”. What you would spare the money? Of course not, all we need is money. And therefore, our investment approach must walk according to this need. Investigate, compare and analyze different investment destinations is an intrinsic need for anyone to be good investor.