Rules You Can’t Afford to Forget
- Be diversified. Most people never explore all the investment opportunities available to them. For every strategy you choose another eight or nine are available.
- Be aware that every year, no matter what the financial markets are like, there will always be opportunities for profitable investment. This is where diversification is beneficial.
- There are two ways to make profits from investing, sell something for a higher price than you bought it or own an investment that will generate a rising level of income that earns you more than a fixed interest investment.
- Be aware no investment is ideal and every one carries a risk return trade off.
- Always base your investments on facts not hope. Hoping an investment will do well carries a much higher risk.
- Never risk more than ten per cent of your capital on a single investment.
- Avoid spur-of-the-moment investment decisions. Few people make sound decisions this way especially if someone is pressuring you to buy.
- Always invest at your own pace, never feel pressured if it doesn’t feel right.
- Be honest with yourself and aware of your own skill level by assessing your own successful investments.
- Always know as much as you can about what you’re investing in and the risk involved. Never invest in anything you don’t understand.
- Never give anyone discretion to invest your money because you don’t understand the investment.
- Understand your own personal capacity for risk, your comfort level.
- Write down your investment strategy and stick to it.
- Be prepared to sell investments if they are out of your comfort level.
- If you want to make money learn your strategies well and be prepared to give the time required to do so.
Have an Amazing Day
Teresa and the Team at
Tags: comfort level, investment education, profitable investment
