Friday, 5 June 2015
A few Tips how to avoid losing money on your investments!
Set financial goals. Decide how much money you want to gain through investing and how soon you'd like to get it. This is the first step in financial planning and deciding on investment strategies and to decide what kind of market suits your needs.
Decide how much risk you can afford to take. Opportunities that can make the most money for you are alsomore risky. Investments that offer a chance at big earnings have bigger risks. At the very least, they can keep you awake at night worrying. If you are a nervous person, high-risk investments may not be a good choice for you.
An investment is never worth losing your sleep over.
Understand the vehicle you want to invest in. Do some research on your own, instead of just following trends or taking advice from family and friends. Do your own homework, try to undesrtand the market where you're going to invest in.
Become educated about financial planning and investing. Get to know the buzzwords and read financial news and books. A mentor or investment coach can help make investment strategies and fundamentals easier to understand and teach you how to avoid losing money.
A good secondary place are forums, there are tons of forums out there where we can learn allot.
for example great forex forums are:
Use sound judgment, not emotion, when working on strategies. Just because you like a company or product does not make it a good investment. Similarly, investing in a new idea or product that sounds good to you may not be a good idea, unless it has a solid business plan and compares well to existing competition.
Don't judge a book on it's cover, it's not because someone has a nice website, they also offer a good product.
Look at their past performances, how they handle your questions, do they threat you like a client or just a number etc..
Be realistic. An investment can't be the only source of income you have.
It has to be something you do on the side to generate an aditional income. Always keep in mind how safe an investment can be, you'll always have a chance to lose some money to.
Have an emergency fund in place. Keep some of your money in liquid investments you can tap easily and without penalty for addressing unexpected contingencies. This fund should amount to about six months' worth of normal living expenses.
Diversify your investment portfolio. Don't invest all your money in one forex account stock or Real estate property.