How To Invest Your Money
Investing in your own money is a complex and potentially dangerous business. You can suffer great losses. In order to survive in the investment world you need to sustain your profitability.
Basic Principles Investing Your Money
Buy at a low price, sell at a high price is the main transaction. If you like a fund or stock, just get it. Performances don’t matter. You shouldn’t say goodbye to paper with good intentions. Keep your valuables on your hand. Your losses don’t reach great deals.
Do Not Commit To Careless Transactions
Do not connect too much to a single fleet or stock. As John Harvey Jones once said, “Sometimes you may even need to kill your most loved one. Generally think long term. As the great American investor Warren Buffett said, “If you will not be happy to get a piece of paper that will not bring you 10 years. Periodically inspect your portfolio. Make sure you have a proper balance. Convert your revenues to re-invest. Your total income will make a tremendous difference. Do not put a basket of all your eggs.
Long-Term Interest Rule
Distribute your investments on a sectorial basis. It is a good idea to retain long-term interests, but there is no guarantee that you will hold them forever. As a result, it is not for buying and selling, but for taking and selling. Spend the time of thought you know to buy your shares before you decide to sell them. Many investors have been hurt by this rule.
Watch and benefit from investment instruments that provide tax incentives. But the ease of tax is not the main factor that you will consider when deciding on your investments. If you do not understand how an instrument works and how it makes profit, investing in it is not a good idea.