Golden rules of investing

Considering that the very concept of “investing” came to the post-Soviet space quite recently, the number of newcomers in this business goes beyond the limit. Based on this, a number of typical mistakes (rakes) of a young investor can be identified. And we will probably start with start-up capital, so ...

7 Golden Rules for Successful Investing

Rule 1. Constantly increase your investment capital. 

Investing requires money, and the total amount of this money must constantly grow, otherwise it will not be possible to call it investment. As a source of growth can act as a means deposited from the main salary, and the resulting profit from the already invested funds (investments).

In many materials there is a figure of 10%, which should be deferred from salary, but as for me, this is all individual. Everyone chooses how much he can save, without compromising the quality of life, but more on this in the next paragraph.

Rule 2.  Do not invest the last money.

Any type of investment carries increased risks, so by investing your last money you risk staying with nothing. You should always have a stock of money for basic needs and family maintenance, for at least a few months, or even years. But there is something worse than losing recent savings, see the next paragraph.

Rule 3.  Do not invest other people's money.

There is nothing worse than being someone's debtor, especially when you are a decent person. Investing borrowed capital - you are doubly at risk, since having lost it, you will have to look for money to repay the debt to the lender. Another question is if you have where to return from, but then why do you need credit money?

Rule 4. Having an investment strategy.

An investor without a strategy is no longer an investor, but a gambler. You must have a plan of action (preferably fixed on paper) for any possible situation. In this case, you unconditionally must adhere to it, and make adjustments only when the market is closed. A change in strategy “on the go”, or during investment decisions, is often caused by various emotions or investor’s excitement, more on this later.

Rule 5. No excitement and emotions.

I often mention the phrase “Investing should be boring.” Indeed, if you want to be successful, then investing should turn into a routine for you. Not a single investor has been helped by either excitement or human emotions; therefore, a smart investor will never go to “Wah Bank”, but will carefully increase their investment capital.

Rule 6. Do not store all eggs in one basket.

Investors call this a word "Diversification". Let me explain with an example: Knowing our banks, would you choose to invest all the money in a 1 bank or distribute it into several banks? Of course, I would not invest in banks at all, but in this situation I would choose several banks, since the probability that everyone will "burst" is less than the probability that one will do it.

Another important point, newbies often make the mistake of doing diversification for the sake of diversification. Let me explain: having read that it is necessary to diversify investments, they begin to actively look for where to invest, while often investing in untested or unprofitable investment instruments, purely for the sake of diversification. As you guessed, nothing good comes of it.

Rule 7. Assess profit and risk correctly.

Investing is a long-term process, so immediately kill your appetite so you don’t have to give up. There is even such a saying - “Expect the best and prepare for the worst,” so a smart investor should always know how much he can earn and how much to lose in order to stay afloat.

I hope you really will help this "parting words for beginners" and you will not fill yourself other people's bumps. Learn to risk justified, successful investment!

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  1. ilya28087
    10.02.2021 21:50
    #15
    Thanks for the article, I went to plan a strategy))
  2. Robin2020
    21.06.2020 12:29
    #14
    Thanks for the helpful tips!
  3. Dagon
    03.03.2020 20:20
    #13
    It's interesting about the strategy, perhaps my strategy is "kind of a cool project, I'll send it" ..)
    1. n1kto253
      03.03.2020 20:53
      #12
      I think many people do this strategy, including me))) Especially at the initial stage, in the future you begin to take this more seriously and consider in detail where to go)
      1. 4difeer666
        03.03.2020 21:39
        #11
        According to such a strategy, I stood without growth for a year, until you start to think it’s not even interesting to invest
  4. praveen3504
    27.01.2020 10:52
    #10
    TRUE ... GOLDEN RULE "NEVER INVEST WHAT YOU CANNOT AFFORD TO LOSE"
    ALWAYS HAVE A CLEAR VISION AND PLAN .... GREAT POST
  5. Marchuk
    19.01.2020 16:12
    #9
    Thanks for the informative article. But rule 5 is most suitable for me. No passion and emotions.
  6. Nik888
    15.04.2019 04:28
    #8
    Thank you for the interesting and informative article.
  7. wonderful454567
    14.04.2019 16:25
    #7
    From myself I will say that you have forgotten a very important point, like accounting for investment capital, I do it through Google tables, so you specifically see that you are in the black or in the red, I myself have been investing in the 4 month. I put min deposits they are usually from 10 $, at the moment I have a loss 94,59 47,5 profit, and so periodically these amounts are at war with each other)))), all profit!
  8. LegenDa
    01.02.2019 16:23
    #6
    Interested in the rule of having an investment strategy. Yes, each investor chooses his own, but most likely by tyke method. And I would like to know from experienced people which strategy is the most advantageous and, most importantly, safe
    1. 4difeer666
      01.02.2019 16:29
      #5
      Yes, I think there is no secret that it will come with experience, you see a beautiful, unique, adequate tariff plan, according to which you can give a profit, not 144 for 12 days))))), well, if you get an insider on the admin, then in general
    2. Alex2601
      01.02.2019 17:52
      #4
      I suppose, in projects that I consider to be more reliable (and, in the opinion of others, too), I invest a larger amount (regarding the funds I don’t feel sorry for losing), and the dubious amount is smaller, and there must be a sufficient number of investment sites in the portfolio!
    3. Marina
      01.02.2019 18:29
      #3
      HYIP strategy is a relative matter. It seems that everything seems to understand how to act, and then it does not work once. Here, rather, intuition is important.
      1. Alex52
        01.02.2019 18:59
        #2
        agree about intuition
        1. 4difeer666
          01.02.2019 21:42
          #1
          The loss of reputation, and then re-stuffing it is normal, once a year any admin HYIP bydlit
  9. udimka
    08.12.2018 02:30
    #0
    I liked the phrase: "Investing should be boring"). Although, on the other hand, if you invest successfully, then it is quite interesting to watch how the balance grows)
    1. LegenDa
      01.02.2019 16:24
      And if falls?
      1. Alex2601
        01.02.2019 17:38
        Therefore, it is not necessary to invest last or loan money in HYIPs, and when the balance falls, take it as if without disappointment and go further if there is a desire!
  10. Stekolchik
    04.11.2018 04:19
    Yes, there was a financial investment experience. pyramid webtransfer. 3000 $ invested
    for a month under 2% per day and flying. Not a penny from the project. That's where the toad smothers. Although before this, the acquaintances were withdrawing without problems. Yes, there was only excitement, no understanding, no strategy. Fortunately, the money was his, though the car was gone. Do not repeat my mistakes. All good profits.
    1. udimka
      08.12.2018 02:28
      Yes, I sympathize, there should be composure in investments and emotions should always be kept under control.
    2. wonderful454567
      14.04.2019 16:21
      This is the instruction "How easy is it to get rid of the car?"