You want to invest, but do not know where to start? Then this article for you, we will consider the rules of investing for beginners.
Investment Rules for Beginners
Investing is one of the easiest ways to earn your first fortune. It is enough to invest small funds in a business that you think will soon flourish.There are many exchanges on the Internet offering to invest money, for example, in the currencies of different countries, precious metals and securities.If you are burning with the desire to quickly invest, but in fact, you have only a bunch of homework from the university, do not despair. In fact, as long as there are resources like essayspark.com/buy-essay, the problem of free time for students is solved by itself. Entrust your task to professionals and keep reading about the rules of investing.
It would seem that everything is simple – invest money and earn! But the main problem, especially for beginners – where to invest your money. After all, even successful companies have periods of decline, during which your entire small fortune can easily be reduced by several times. Therefore, it is very important to keep to certain simple investment rules that will allow you not only to secure your finances, but also to earn the first capital.
Leave a Reserve
None investment, even the most profitable one deserves to get absolutely all of your money. Your bank account should always have an acceptable margin of funds. Ideally, it must be no less than 50% of what you have already invested.
This cuts off a huge number of risks, connected not so much with unforeseen miscalculations of consequences, but rather with an element of uncertainty. Investments in conditions of uncertainty area kind to gambling, and the share of this very uncertainty is always present, even in the most seemingly concrete cases.
Many scientific works have been written on the calculation of the profitability of investing in conditions of uncertainty. They consider various ways of assessing the rationality of investing money, examining the types of uncertainty and its impact on specific cases. You can study several similar works and make sure that this issue is very important and to leave it out of account means to expose yourself and your money to great danger.
Risk and Income
Always assess in advance the possible risks from the income that investment will bring to you. You should always be sure that in any case you can win 2 times more than lose. Only then you can take a chance. But simply keeping money in a bank or at home is also a risk. The bank may smash up, at home the money is slowly but stubbornly consumed by inflation.
Do not be afraid to take risks, otherwise, you will lose much more.Remember how you risked in your student years, writing in the search box “write my essay”and facing an agency for writing academic works, which you did not know anything about. However, the risk was more than paid off by mutually beneficial cooperation and a great opportunity not to waste time on monotonous assignments.
Invest Only Your Money
Refuse any loans. If you invest money and risk them, then you can rely only on yourself. There is no investment that cannot be lost. But in the case of your money, you will only lose the amount that you have invested. If you lose the money of the bank, you will also have to reimburse what you have lost.
Do Not Hurry
Of course, in time you will learn about predicting which company will be successful, and which one will go bankrupt, but it is better not to hurry in the beginning. Look at the attitude of other investors, find out more about the founders of the company and what is the basis of their capital. Knowledge is power, and in the case of investing, it is also money that you can either earn or lose.
Beware of Big Interest
If someone offers you a 200% profit for only the first month, then this person either does not understand what he or she is talking about or lures you into an adventure. Capital very rarely grows at such a fast pace, and large companies consider 10-15% growth for the year as the success.
Learn, but Do Not Imitate
Always consult with more experienced investors, but do not copy their actions. Remember that they have not only pool of experience in reserve, but also capital. They can already risk, relying only on their own flair. And you cannot afford such luxury. Moreover, over time, you must develop your own investment strategy. You can read dozens of textbooks on this topic, but they will not give you the experience that practice will give.