Investing Top 10
INVESTING 10 things that you should try to do:
- Always have an investment strategy and follow it strictly. Set up an investment strategy (investing rules) even before beginning of investing: the strategy must include how, when and in what investments you will invest, how you will respond to changing market conditions.
- Count all the fees paid to anyone carefully. Always calculate and analyze how much commissions and any other fees are you paying to brokers or other firms (persons), if you can - try to spend less.
- Take control of risk. Always know what the real risk contains your investment portfolio and what can be the loss at the worst case scenario.
- Buy cheap, sell expensive. Sounds banal, but still true – if you will succeed to buy cheap and sell expensive, you will make a profit. Unfortunately, it's not as easy as it seems at first glance.
- Diversify. When constructing up your investment portfolio try as far as possible to diversify investments: when some will lose their value quickly, the other ones will help to maintain the balance.
- Be interested in your investments. If you will care for things that you are investing in, and then you should get a better result, because the more you know, the better understanding about a worth of your investment will come.
- Choose traditional investments. The variety of investing instruments is very wide and confusing, but you should be carefully of alternative investment products, especially, if you are not sure about them. Genius lies in simplicity.
- Learn from mistakes. Do not panic if you made a mistake in investing, it happens even for professionals. But try to find out why this has happened, the next time try to avoid the same mistake.
- Be a long-term investor. There are many different investment strategies and approaches, but long-term investment should be the most proper one.
- Learn to invest. The more you know the practical and theoretical nuances about investing, the better the result can be expected.