Basic Investment Rules for Beginners

[Enzymada]

Don't trade in stocks unless you're doing it for fun. Investing, at its core, is purchasing part of an asset in the expectation of it gaining value, thus making money for you. Investing is NOT purchasing an asset because it's trendy or looks nice. Never invest more than you can afford to lose. Do your own research and don’t buy shitcoins. Never invest in something you don’t understand. Don’t try to time the market.

 

[Kiko]

Basic Types of Investing. This is the building block of investing for beginners. There’s an endless list of specific investments you can make, but nearly all investments fall into one or the other of a handful of categories commonly referred to as “asset classes”. An asset class is made up of investments with similar characteristics that are also usually governed by the same set of financial regulations. Equity Investing. Equity investing, the buying and selling of stocks in publicly traded companies, is what most people probably think of when they hear the word “investing” and is a popular investment for beginners.

 

[Nurudeen]

This is a good piece of information for those who want to go or venture into stock or shares trading. One need to acquire knowledge before delving into this investment. As a newbie here you need to know how to study and do fundamental analysis and technical analysis to break even in this business

 

[Adebayonle7]

Every investor has to study out the investment plan properly and the company or organization they are investing into before going all into it. Another thing to consider is that as a beginner you need expert's advice and also be opened to suggestions and advice from time to time in other to improve and grow. Also ensure not to go all in with all your cash, It is safe to begin from somewhere with like 40% of your cash incase of any risk association situations.

 

[Kayzzy3]

This thread is mainly intended for those who have never invested, but they are interested or willing to invest. Here are 5 basic principles that novice investors should understand:
1. Your Financial Condition is Healthy
If your financial condition is healthy, it means that you have no debt, and can meet your daily needs by having savings, emergency funds etc.

1. Make sure your financial condition is "healthy"
A "healthy" financial condition can mean many things. But before starting to invest, it's good to make sure you are not in debt, smoothly paying credit card bills, have other savings, and of course: an emergency fund.

2. Choosing an investment instrument
There are many available investment instruments out there that you can choose from, choose the instrument that you understand best and have good knowledge of its characteristics, advantages and disadvantages, profit levels. You can choose stocks based on mutual funds, because many people claim that mutual funds are investments with high profit potential. Of course there are many other alternatives you can also choose investments in Cryptocurrencies, stocks, bonds, property etc.

3. Diversification
Diversification is intended not to place all funds in one type of investment, placing investments in at least 3 different types of instruments (hedging). suppose you invest in 3 different types of stocks.

4. Increase Skills
Whatever type of investment you choose, be it stocks, cryptocurrencies, property etc, don't forget to always improve your skills and knowledge. There are many ways such as joining forums, seminars, and reading new articles frequently. Because investing is a long term, an investor must be able to think and predict.

5. Take an active role
Don't just stand still and wait for luck to come to you, but play an active role, because investors have to recalculate or predict every time there is new news related to your investment.

Do you have other ideas / opinions, or if you have questions about investing, feel free to comment.

The 5 points you raised above are really essential for successful investment for any investor for that matter and should be pivotal in their list of things to consider.

Another point is not to be greedy, don't jump into investing in a project that promises outrageous returns the is probably a scam to avoid.

Furthermore know when to pull out from an investment to minimize loses.

 

[Mujahid12]

This thread is mainly intended for those who have never invested, but they are interested or willing to invest. Here are 5 basic principles that novice investors should understand:
1. Your Financial Condition is Healthy
If your financial condition is healthy, it means that you have no debt, and can meet your daily needs by having savings, emergency funds etc.

1. Make sure your financial condition is "healthy"
A "healthy" financial condition can mean many things. But before starting to invest, it's good to make sure you are not in debt, smoothly paying credit card bills, have other savings, and of course: an emergency fund.

2. Choosing an investment instrument
There are many available investment instruments out there that you can choose from, choose the instrument that you understand best and have good knowledge of its characteristics, advantages and disadvantages, profit levels. You can choose stocks based on mutual funds, because many people claim that mutual funds are investments with high profit potential. Of course there are many other alternatives you can also choose investments in Cryptocurrencies, stocks, bonds, property etc.

3. Diversification
Diversification is intended not to place all funds in one type of investment, placing investments in at least 3 different types of instruments (hedging). suppose you invest in 3 different types of stocks.

4. Increase Skills
Whatever type of investment you choose, be it stocks, cryptocurrencies, property etc, don't forget to always improve your skills and knowledge. There are many ways such as joining forums, seminars, and reading new articles frequently. Because investing is a long term, an investor must be able to think and predict.

5. Take an active role
Don't just stand still and wait for luck to come to you, but play an active role, because investors have to recalculate or predict every time there is new news related to your investment.

Do you have other ideas / opinions, or if you have questions about investing, feel free to comment.

Absolutely we can achieve success in investment by implementing these points and you should not invest much money in starting on any investment platform, you should invest little by little, this will give you success on the platform and you will also become an expert in it.

 

[Ebuka Stephen]

When investing you should also have vital information and knowledge about what you are putting your money into. With having all necessary information you must also take some calculated risks to succeed.

 

[Alexandoy]

My financial status is healthy for years now but in the past years I didn't have the interest to invest. Now it makes me realize that investing is an endeavor that is exciting. In other words I can invest my money just like betting on gambling although investing in stocks or in forex is milder than real gambling. I am in a dilemma on where to invest. My budget is just $10 for a beginner and maybe the maximum is $20 when I finally decide on which investment I would put my money in.

 

[Quert]

Pay off bad debt to stop traps in capital
Before you have paid off undue debt, do not even think about making any big investments. I don't mean your home mortgage or student loans.

These factors do not deter you from saving, but if you have "bad" credit card debt that gets you into trouble with interest payments, pay that off before you put money on the stock market.

 

[Chris]

Invest as early as possible and as much as you can. Compound interest works magic on your money, turning small and steady investments into a big nest egg that buys financial freedom. ...
Take calculated risks. ...
Don't invest money you'll need right away. ...
Don't invest in anything you don't understand. ...
Diversify your portfolio.
Do not depend on your investment.
Invest with caution.

 

[Draysongz]

These are good plans. Let me add to that, make sure you have a steady financial income, choose your investment plan and platform wisely and never invest more than you can afford to lose. Good luck

 

[FunkE]

Impressive rules overall I especially like number five as I consider that the most important. The idea of going into something with my cash without taking an active role is somehow to me. For an investment with all the attached risks and downs is too carefree for me to pay lip service to it with my money. So if am investing whether as a novice or professional am most definitely going to take a front role in it.

 

[Ryeetar]

Before starting up any business as a newbie, there are some list of guidelines you need to follow. Firstly, have a business mentor a mentor is one who can tutor you and must as well be good in that field, secondly you need to go do business classes but online and physically, thirdly you need to clear your mind off very form of negativity, get a good account officer.

 

[Kamon c4]

This thread is mainly intended for those who have never invested, but they are interested or willing to invest. Here are 5 basic principles that novice investors should understand:
1. Your Financial Condition is Healthy
If your financial condition is healthy, it means that you have no debt, and can meet your daily needs by having savings, emergency funds etc.

1. Make sure your financial condition is "healthy"
A "healthy" financial condition can mean many things. But before starting to invest, it's good to make sure you are not in debt, smoothly paying credit card bills, have other savings, and of course: an emergency fund.

2. Choosing an investment instrument
There are many available investment instruments out there that you can choose from, choose the instrument that you understand best and have good knowledge of its characteristics, advantages and disadvantages, profit levels. You can choose stocks based on mutual funds, because many people claim that mutual funds are investments with high profit potential. Of course there are many other alternatives you can also choose investments in Cryptocurrencies, stocks, bonds, property etc.

3. Diversification
Diversification is intended not to place all funds in one type of investment, placing investments in at least 3 different types of instruments (hedging). suppose you invest in 3 different types of stocks.

4. Increase Skills
Whatever type of investment you choose, be it stocks, cryptocurrencies, property etc, don't forget to always improve your skills and knowledge. There are many ways such as joining forums, seminars, and reading new articles frequently. Because investing is a long term, an investor must be able to think and predict.

5. Take an active role
Don't just stand still and wait for luck to come to you, but play an active role, because investors have to recalculate or predict every time there is new news related to your investment.

Do you have other ideas / opinions, or if you have questions about investing, feel free to comment.

I fully agree with you on this. You need a health financial condition before venturing into stocks and shares trading. The market is very volatile and you can easily run out of funds if you’re not careful it’s best advised to be financially stable before going into This business

 

[Hassan14]

This thread is mainly intended for those who have never invested, but they are interested or willing to invest. Here are 5 basic principles that novice investors should understand:
1. Your Financial Condition is Healthy
If your financial condition is healthy, it means that you have no debt, and can meet your daily needs by having savings, emergency funds etc.

1. Make sure your financial condition is "healthy"
A "healthy" financial condition can mean many things. But before starting to invest, it's good to make sure you are not in debt, smoothly paying credit card bills, have other savings, and of course: an emergency fund.

2. Choosing an investment instrument
There are many available investment instruments out there that you can choose from, choose the instrument that you understand best and have good knowledge of its characteristics, advantages and disadvantages, profit levels. You can choose stocks based on mutual funds, because many people claim that mutual funds are investments with high profit potential. Of course there are many other alternatives you can also choose investments in Cryptocurrencies, stocks, bonds, property etc.

3. Diversification
Diversification is intended not to place all funds in one type of investment, placing investments in at least 3 different types of instruments (hedging). suppose you invest in 3 different types of stocks.

4. Increase Skills
Whatever type of investment you choose, be it stocks, cryptocurrencies, property etc, don't forget to always improve your skills and knowledge. There are many ways such as joining forums, seminars, and reading new articles frequently. Because investing is a long term, an investor must be able to think and predict.

5. Take an active role
Don't just stand still and wait for luck to come to you, but play an active role, because investors have to recalculate or predict every time there is new news related to your investment.

Do you have other ideas / opinions, or if you have questions about investing, feel free to comment.

The best way to trade is to be knowledgeable and patient in the first place and stay away from the place where there is more risk or risk. Always invest more in that place. Where to get more profit If you don't know how to trade at all then never trade in it as it will cause you a lot of losses and here are some things to take special care of. Falls.

 

[Ayokex]

Some of the basic investment rules for new beginners includes among others: never invest more than what you can afford to lose. Never invest based on emotional response. Never invest until you know the details of what you're investing in. These and many of these rules guide beginners to put themselves in check before they start a business.

 

[btaliat]

A thorough research will help a new investor. You do both offline and online reaches on the investment. Also, you must leant how to manage risk by taking the investment with higher risk but you invest low in it and vice versa. All these prevent shortage.

 

[Victor001]

Invest when you are ready intellectually and knowledgeably do not rush into any investment or peer pressured. Do what you like not what you want by these do what makes you happy not what makes you confuse. They are so many valid points but you need to take action.

 

[Sarfraz Ali123]

Compound interest works magic on your money, turning small and steady investments into a big nest egg that buys financial freedom. The sooner you start investing in assets that produce a reasonable rate of return -- and the more you invest in those assets -- the harder your money will work for you.

 

[idhans]

This thread is mainly intended for those who have never invested, but they are interested or willing to invest. Here are 5 basic principles that novice investors should understand:
1. Your Financial Condition is Healthy
If your financial condition is healthy, it means that you have no debt, and can meet your daily needs by having savings, emergency funds etc.

1. Make sure your financial condition is "healthy"
A "healthy" financial condition can mean many things. But before starting to invest, it's good to make sure you are not in debt, smoothly paying credit card bills, have other savings, and of course: an emergency fund.

2. Choosing an investment instrument
There are many available investment instruments out there that you can choose from, choose the instrument that you understand best and have good knowledge of its characteristics, advantages and disadvantages, profit levels. You can choose stocks based on mutual funds, because many people claim that mutual funds are investments with high profit potential. Of course there are many other alternatives you can also choose investments in Cryptocurrencies, stocks, bonds, property etc.

3. Diversification
Diversification is intended not to place all funds in one type of investment, placing investments in at least 3 different types of instruments (hedging). suppose you invest in 3 different types of stocks.

4. Increase Skills
Whatever type of investment you choose, be it stocks, cryptocurrencies, property etc, don't forget to always improve your skills and knowledge. There are many ways such as joining forums, seminars, and reading new articles frequently. Because investing is a long term, an investor must be able to think and predict.

5. Take an active role
Don't just stand still and wait for luck to come to you, but play an active role, because investors have to recalculate or predict every time there is new news related to your investment.

Do you have other ideas / opinions, or if you have questions about investing, feel free to comment.

As a beginner in any business or investment always ensure that you are not overwhelmed by family responsibilities while starting up a new business. If you are starting up new, i always advise that 100% of your capital should not come from only loan. You should be able to start up with your little capital.