Basic Investment Rules for Beginners

[Innocent Jeremoth]

Embrace an Investing Strategy. ...
Invest With a Margin of Safety. ...
Asset Allocation is
Diversification is Vital.
Invest For the Long Term
Keep Expenses Low
Use Compounding to Your Advantage. ...
Employ Risk Management Strategies.

 

[Toyoabasi]

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 have never invested and I intend to.
Thank you so much for posting such helpful guide.
I should ensure my financial condition is healthy, choose an investment instrument, diversify, increase my skills and take an active role.

 

[YERUS]

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.

One should have full knowledge on what he or she is about investing in.
Do not put all eggs in one basket, diversify your investments.
Take calculated risks.

 

[tyrim88]

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.

These are very good investment points you just stated out.Anothe thing to do also is to be financial discipline,you must be able to know the rudiment of financial discipline and manage resources very well.

 

[HayKay]

You must know your risk tolerance level. You have to know the extent of risk you can tolerate as an investor. You also need to be patient as was highlighted here; in building an investment portfolio on the road to wealth, patience is a virtue
You should also be constantly updated to know happenings from time to time

 

[Kubiat-Abasi]

Do not borrow to invest or start a business, avoid it like a plague. Also, before you invest in an asset, be sure to make your research critically. Do not invest in something because your friend or counterpart is doing them. Also you should also be ready and willing to embrace the risk attached to it.

 

[CeeJase]

When it comes to Investments you should know that the most important thing to do is not to jump into any investment that you did not verify to be something that is legit otherwise you are going to lose your money.

 

[Kaffyfolla]

Investing all disposable money in a single stock, a currency pair or a bond is yet another common mistake made by inexperienced traders. This lack of diversification is sure to result in money loss at some point. The wise approach is to invest gradually so that one is able to remedy his mistakes without risking the entire capital.

Leveraging funds by using a big margin is like risking all, but it entails more damages, as it augments not only gains, but also losses. Practice helps to learn how to control capital at risk, and until experience is gained, it is advisable to be cautious with leveraging. Keep in mind that with some highly leveraged products, losses can be greater than the initial investment!

It should be remembered that investing takes a longer term, so cash should be set aside rather than having the entire amount put into action. Although cash invested in the market in bulk could yield better returns, reserves should be available to use in emergencies or when opportunities arise.

 

[Bookwormlux]

Beginners should endeavor to acquire lots of knowledge about what they're up to in order to make sure they won't waste their money as many ignorant business owners started.

 

[Udah jnr]

All the point align are well arranged to follow , don't you ever borrow to invest because you may go at loss .

Post automatically merged: Nov 29, 2021

Always do a research about a company before buying thiers shares or stocks , same thing is also applicable to buying of cryptocurrencies

 

[Bookwormlux]

As a beginner, it is very much important to learn profitable skills like sales , negotiations and marketing as they would boost your being productive.

 

[joy101]

Investing you should you should never invest all your money and also know when to invest your money, so to make some profit from the investment.

 

[Nomad]

You can invest in your own business or invest on someone else's business depending on the availability of funds, your business management skills and also interest.

 

[greenie]

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.

 

[GoldenLady]

Interesting points, but would it be possible and advisable for someone with debts to start saving? Some pay a fraction of their income monthly to settle debt, what of any extra income that the person gets?

 

[HayKay]

Another thing is to start small - make sure to set out your short and long term plans.
Don't be in a hurry to make money off investment as well, start with index or mutual funds and you can grow from there.

 

[joy101]

Investment is really good I don't see anything wrong with investment if actually you have money to invest, because investment gives one hope in the future.

 

[ganibade]

There is rule and regulation for somebody to start a business. Do not borrow money to start a business hence, you will not have rest of mind in your business. Try to go for the advice from your mentor in order to make it in that business.

 

[Kunkun]

Well said and it's also important to invest with what you can afford to lose because nothing is certain, and never borrow to invest too, follow those that are doing well and digest lots of informative materials

 

[kayode10]

Newbies are often advised to diversify their investment so that they will not lose out entirely when things don't go the way they want. But one thing people don't realise is that it can be very hard to make substantial profit doing this.