My personal Guide to investing (What you Should do when Investing)
It is easy to invest, I mean literarily put your money in a place where you are told you would get return is a good thing and anyone can just put their money there and expect a return at the end of the day, week, month, year or couple of years. Whoops did you call that investment? What about those who lose their money in the process of pouring money into something they are promised would bring returns but turns out it wasn’t really going to bring returns? What about people that got pitched to about picking the right stock/plan/package and so on, so they make double the amount they invested and at the end, they get nothing as they lose both the profit and the capital?
The issue with a lot of people when they talk about investing is they want to get rich quick but news flash, investing is not about getting rich quick, it is about getting preparing for long term financial freedom and wealth but slowly, very slow. Either you are starting with a few bucks or with hundreds, or millions of dollars, one mistake you should never make is investing in something you do not know. Invest I what you know. If you want to buy and sell, one thing you should always do is know what to buy, when to buy and when to sell. You can’t do any of this three if you are not familiar with what you are investing in.
Investing isn’t trading, investing should be able to get you passive incomes if you are not willing to sell immediately because you want it to get high, I mean flipping of stocks, and then the best thing is invest in stocks that will give you dividends. So you might want to know which company to invest in. Well, charts can tell you how a company stocks perform, reports can tell if the company I certified or not but only seeing a company from a customer view before investing can determine if the company is worth investing. If you as a customer always spend your money in Dominos and you have a few friends who can’t do without Dominos, then there is a possibility that a lot of people can’t do without them too. With dividend paying stocks, you do not have to flip your stocks, the dividend pays you on a regular basis.
Do not overpay for an investment. People who bought Bitcoin when the media were announcing it as a good investment as the returns were high, never made profit from it. The worst time to invest in a business is when it is at an all-time high or a current high within a particular period of time. If an investment is really high, then wait for it to drop before investing. There will always be a market reset for all investment of value, so wait for when the market is down before investing.
Leverage your investment. Never invest with people’s money as a beginner because you put yourself in debt and if you lose, you get amplifier losses.
Investing is not a one day thing. It is gradual process of failing and success, losing and winning. It can be very annoying to lose your funds but that’s how it works. Learn at every step you take instead of panic sell.
