Golden rules of investing

11.03.2018 1 091 20

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 in 10%, which should be postponed from the salary, but as for me, it's all individually. Everyone chooses how much he can postpone, without prejudice to the quality of life, but more about 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. 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!
  2. 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. 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. 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. 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.
  3. I liked the phrase: "Investing should be boring"). Although on the other hand, if you successfully invest, then watch how the balance grows is quite interesting)
      1. 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!
  4. 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.
  5. Good article. He started his, so to speak, activities on earnings on the Internet in sports betting. The rules are both the same here and there. Cold head on his shoulders, lack of greed in the blood and the ability to think through steps on the front - this is the key to success!
    In rates for 4, he achieved good results. Now I will try my strength also in HYIPs.
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