Risks of investing

Risks of investing

02.02.2022, 13:24

1. You need to invest that share of your assets, the revaluation of which or the loss of part will not cause significant pain.

2. It is necessary to invest funds that will be free in the near future. This is done so that you do not have to go out with securities and catch a moment of negative revaluation or, simply put, with losses. Initially, the amount of investment should be small. 5-10% of your assets to understand how it works to try. Then this proportion can be increased.

3. It makes sense to go the first way for a novice investor with a small amount to see where the extra costs arise.

4. A novice investor should not actively trade during the day, trying to guess the direction of quotations (many newcomers lose money trying to outwit the market). It is better to start with investments "in the long run". You need to carefully select companies and find out what the company lives, how it develops. Then find the best time to sell stocks.

5. It is not necessary to invest all the money in certain assets, it is desirable to have a diversified long-term portfolio of shares. This is the approach. which, most likely, can bring a good result.

6. You need to invest in those sectors of the economy and specific companies that you understand. And here we need to look not only at the big names and events, but also at the prospects of these areas of the economy. And it is important to study a particular company well.

As Warren Buffett said, "If you haven't been able to own these stocks for 10 years, don't even think about buying them for 10 minutes."

7. The most important thing is to continue to engage in self-education in investing, so that investments are not hype, based only on rumors and unverified information. There are a lot of analytics available now, and not all of them are professional. The most important investment you can make is to invest in yourself.

Of course, following these fairly simple rules does not guarantee the success of the investment. But this makes investing in risky assets such as stocks as understandable and safe for the average investor.

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