There are a few important steps to take before you start investing. First of all you must set your mind to increase your wealth.
1. Saving money is a prerequisite if you want to invest
Unless you are already rich, you will have to learn creative ways to save money. Besides helping you guarantee a solid career as an investor, this is a prerequisite to increase your wealth.
2. You must know at least 3 different ways to invest in order to increase your wealth
Diversification is of essence. Besides the stock market, you should consider investing in real estate and even opening a company. Of course, you must not rush into these decisions, but you should definitely consider them.
3. Be realistic when it comes to the profits
Safe investments usually mean steady and low profits. If you want large profits, get ready to take serious risks.
4. Think long-term
You should think long term (at least 5 years). This is very important to stop you from getting frustrated with the volatility of the market and the constraints of the economy.
5. Adjust your goal to the right investment
Now, if you want to invest today thinking about using the money one year from now, you absolutely can. There are many kinds of investments that would allow you to do that.
But, if you want to play with the “big boys” you should not buy shares and use that profit one year from now. The real game is hard and it takes a lot of money and a lot of patience.
6. Diversify your investments
Maintaining the long term thinking to achieve an investment portfolio that combines stocks, government bonds, fixed income, and so on, is an intelligent strategy to soothe eventual losses and to take advantage of different investment opportunities.
7. Before investing, look at the big scene
Make a deep analysis on your current debts on short, medium and long terms. Good planning is essential if you want to invest in the most successful and secure way.
8. Ignore short-term investments
If you are focused on a long-term project and you have a good plan, quit the habit of monitoring the market daily. It will drive you insane and may induce you to make foolish choices.
9. Start investing ASAP
The time is a great ally to the investor. If you start investing while you are still young, and if you invest in a consistent way, you will achieve better results with less effort.
10. Do your homework
Before buying or selling stocks, you must study them very well. The safety margin is your greatest ally.
11. Don’t forget to pay attention to the taxes
Many new investors make mistakes because they do not pay attention to the Income taxes while investing.
Sadly, many people lose a lot of money simply because they do not understand the rules of the stock market game.
12. Pay attention to fees
Run away from abusive fees – there are many brokers trying to profit on your lack of knowledge.
13. You must be strong when things do not go the way you expected.
The stock market will make you feel like you are on a roller coaster, so you will have to make an effort to stay cool, keep focused and have patience. Things will turn out just fine as long as you choose a sound strategy.
14. Don’t trust in anyone who claims to know everything about the market
To invest successfully you must avoid certain traps. Educate yourself, create your own strategies and rely on yourself.
15. Be careful, but consider hiring an expert
Specialized aid can be very helpful, but you must study the markets for some time before hiring an expert.
16. There is nothing more important than your health and personal life.
The world of investments is very exciting, but it is also very stressful. Therefore, it is important to try and live a happy and balanced life – even more important than building a perfect portfolio.
You will find success at the breakpoint.