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10 main rules for the novice investor


Effective investing, like any other activity, requires certain knowledge and skills. However, if you are in the very beginning faced problems, do not despair the road by walking! Do not make sudden movements, remember: investing is not roulette. Every step must be thought out and weighed. But it's the lyrics To the first steps in this difficult case was not similar to Jogging through a minefield, the young investor needs to comply with the 10 Golden rules.

10. Do not invest in the tools that you do not understand

Try not to deal with confusing investment tools, which with high probability will lead you not to the expected profits and losses. No need to be haphazard. First study in detail a tool, and only then proceed directly to invest.

9. Create savings and make savings regularly

Remember: time is on your side is more efficient than a whole team of intelligent financial advisors. If you have the luxury of time, compound interest will do everything for you.

8. Invest in your training

Probably not worth it to you to remind you that learning is light. If you have no idea even about the basic fundamentals of investing, great success can not count. In addition, being a layman, you run the risk of running into scams, which shouldn't be hard to fool naive novice investor. So you very quickly run out of money and vision for financial growth.

To avoid this plot development before you begin investing your money, examine in details the financial instruments. Understand how to actually operate each system. If you still decide to use the services of competent mediators, the obtained knowledge will be useful to you when making a final decision and selection of these specialists.

7. Invest only surplus funds

Many novice investors sin that introduced into the circulation is not their own, honestly the funds accumulated and the money borrowed from a private individual or credit institution. Of course, at first glance, it is much easier not to waste time and energy on the accumulation of own financial resources, and just take in the loans and immediately take the cream. However, do not think that you are smarter than everyone else and such a brilliant idea didn't come to a lot of investors, when, in his excitement. Investors who have chosen this path, often not the financial Olympus, in the deep debt pit.

Remember! Investing is a risky occupation. Even at first glance, the most reliable tools can appear pitfalls that you can not predict and calculate the initial phases. Shares could fall sharply in price, deposits can be frozen etc., However, such excesses shall not cause irreparable damage to the quality of your life.

6. Guided by the strategy of long attachments

Regardless of whether you acquire stock or earn on precious metals whenever possible in the initial stages to take less action. Each subsequent financial transaction reduces your actual income.

To proceed to more decisive action is possible only after you will be able to create a conservative portfolio and you can be sure that you fully have knowledge about the selected options.

5. Diversify, diversify and again diversify

Distribute its financial resources on a few tools. This tactic will help you to minimize the risk of serious damages in case of a critical reduction of the cost of one or more assets. Keep in mind that the behaviour of the chosen asset 100% can not predict any one eminent specialist. Therefore, experienced investors are recommended to allocate funds in deposits, stocks, real estate, precious metals etc.

4. Don't feel bad about mistakes and learn from them

The mental attitude of a novice investor has a significant influence on the success of his career. First of all, no need to dwell on the mishaps that happen to even experienced investors. Try to draw the right conclusions from their mistakes, and not to engage in samoedstvom, otherwise you will soon earn yourself a neurosis and will throw investment.

3. All not make any money

Avoid the strategy according to which an aspiring investor from the first steps of investing all their savings in the tools that he more or less understood. Usually this behavior is only rassredotochit attention and greatly complicates the process of financial control. Of course, capital needs to be diversified, but abuse it is not worth it. The main goal of a successful investor search for the best options, rather than indiscriminately to invest in any instruments that a cursory study seem attractive.

2. Only risk on the part of the savings

It's hard to resist the opportunity to get a monthly 10-15% of the contribution, however, such manipulations involve a high risk. If you still decided to try to make a big bet, it is desirable not to use all capital. For an inexperienced investor to play VA-Bank is extremely unwise.

1. Avoid behavioral stereotypes

In the beginning, avoid the following mistakes common to many beginning investors:

  • Inflated professional self-esteem. The first success, most often not associated with effective calculation, but rather from a happy occasion, is able to create for the inexperienced investor is not really a fair understanding of their own capabilities. This fallacy is, ultimately, may lead to great money loss.
  • The collective unconscious. To act like everyone else, not succumbing to his own reasoning, and the herd instinct, is extremely inefficient. Often the hype around a certain stock portends a sharp drop in their value.
  • Excessive timidity. Because of this, rising costs a series of unnecessary transactions. Remember that it's impossible constant rearrangement of assets to find absolutely a win-win. Investing is always a risk, and if your nervous system can not accept this simple truth, then you should do something else.
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