If you are new to the world of investing, then you are probably reading a lot of information to understand what to do and how to get started. However, reading a lot of sources, it is not easy to take out the general essence to form a general picture. In addition, on the web, you can find a huge number of unreliable sources that spread myths and misconceptions.
In this regard, we decided to collect all the main points that every newbie should know about in order not to make a mistake and lose all their money in the process.
Don’t invest all your savings
Some novice investors are willing to spend every penny or even borrow from friends to invest in one of the options. This is because many hope that this will bear fruit in the shortest possible time. Don’t be careless. You should only invest money if this will not affect your quality of life in any way.
You must understand that this is a rather risky activity that may not pay off at all. To begin with, you must decide on the amount that you are willing to spend, and then choose a short-term or long-term perspective. If you want to have a guaranteed income in the long run, then you can invest in buying precious metals. You can find large gold bars for sale and invest in increasing your wealth.
Don’t rely entirely on professionals
Those who do not want to understand the intricacies of investing hire specialists who manage their investment portfolio. If you have made such a decision, then do not entirely rely on this person.
At the very beginning, you should discuss all the smallest details so that the new manager understands your motivation, and also knows how he should behave with your investments in a given situation. Secondly, you can not completely trust strangers. If you do not want to lose your money, then you should understand the basic principles so that you can control a specialist.
Panic won’t help you
When you start investing in risky instruments, you must be ready to be able to analyze the data in a cold-blooded and thorough manner. Only then will you be able to make the right decisions.
If any fluctuation in the market can make you start to panic, then maybe you should consider that investing is not for you.
The more deals the better
This is what most novice investors think, and then they realize that they quickly get tired and lose their grip. A large number of transactions does not mean that you can get more income. Rather, on the contrary, you must understand that for each such transaction, you need to pay a commission. If the deal turns out to be unsuccessful, then you spend more money than you invest.
Know how to stop
No guts, no glory. This statement is true, but not for the investment industry, especially if you are a beginner. Many believe that with the slightest fall, they will still be able to recoup and do not stop trading. In most cases, such risks are not justified and lead to the fact that you can not only lose all the money but also remain in debt.
Don’t use tricks
Some people are willing to do anything to be successful. In this regard, some do not neglect insider information, thinking that they will be able to fool everyone around and also make a lot of money. However, as practice shows, most of these adventures are not crowned with success. Using such information, you are breaking the law, so you should consider whether you are ready to spend part of your life behind bars.
Novice investors, due to their lack of knowledge, can make many mistakes that can lead to large financial losses. If you want to start this journey, then you need to thoroughly study all the smallest details so that you do not run into trouble.