TEN RULES to INVEST Wisely
Robert T. Kiyosaki delivers insights and answers that help ordinary people ― who probably haven’t had a lot of financial education ― determine what’s ‘real’ and relevant to their financial lives.
Fake Money, Fake Teachers, Fake Assets
In the begining. Remember abouth the risks!
Investing actually always involves risk. You have the same chances for both profit and loss. Unfortunately, novice investors do not seem to know about it - hoping for luck, they put everything "on one card", which usually costs them dearly.
No matter how experienced investor you are, remember that safe and profitable investments do not exist.
To reduce the risk of loss and know what to invest in, you must know at least the basics of investing.
You need knowledge related to the mechanisms of investment instruments or the principles of market functioning.
Thirdly. Mentor help. Using the help of an experienced person.
Find a person who has extensive experience in investing in investment instruments of your choice and who has gained a lot. Following the tips received from your mentor, you may also succeed.
Fourthly. Getting rid of making hasty decisions.
Emotions are always a bad advisor, also when investing. Making decisions on the spur of the moment, for fear of deepening losses, usually results in the loss of invested capital.
The key to success is the diversification of the investment portfolio, according to the principle that "do not put all eggs in one basket". Place your capital in different assets, preferably with different risk levels.
Sixthly. Take care of your back.
A common mistake made by inexperienced investors is to invest all free funds. Meanwhile, another golden rule is to invest a maximum of 10% of your total capital or possibly so much that failure and loss of money are not severe and do not cause serious financial problems.
Seventhly. Stay in the saddle.
If you don't want to get into financial trouble, invest only your own capital. Under no circumstances should you take out loans, hoping for big profits. In practice, you may lose your own capital and borrowed money by staying in debt with the bank.
Eighth. Choose a market.
What to invest in? This decision depends on many factors, including amounts of capital, risk appetite, the possibility of freezing funds for a long time. Maybe it is worth getting interested in the currency market? Maybe you will buy real estate or land? Or you bet on noble drinks? If you don't know what to invest in, you can always use the help of financial advisers.
And the ninth. Planning!
Investing requires proper planning. Without any plan, virtually every investor is doomed to failure, because, for example, playing the stock market is not just about buying and selling shares and waiting for developments. If you want to reduce the risk of losses, create a thoughtful plan containing a rational justification for each transaction made.
Ending with tenths. Start investing like a miser.
If you are a beginner investor, do not immediately jump into "deep water". Start investing small amounts, the loss of which will not expose you to severe financial problems.
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