You’ve probably heard or read about success stories of people who have joined the investment world. But nothing beats the feeling, inspiration, and encouragement you’ll get when you personally know that person. Today, let me share with you my recommendations as well as the investing philosophies of successful investors who I personally know.
Top Philosophies From Successful Investors
Only Invest in Something That You Fully Understand
Investing is already risky. You don’t want to gamble even more by investing in a business that you don’t understand. You should take time to learn about the company you’re planning to invest in. Do your research on your preferred investment strategy and get advice from seasoned and successful investors before making any decisions.
Diversify Your Portfolio
You should never put your money in a single basket. You must learn to spread your cash across several investments. This way you won’t lose everything all at once when the business of your choice fails. By investing money in 10 different businesses, you’ll lose only 10% if one company takes a dive.
Don’t Invest Using the Money You Borrowed
Never use the money you obtained from credit cards or loans to invest. The only exception to this is if you’re experienced in the field of property or advertising. Using debt to invest is risky and it’s best to avoid it even if you’re already an experienced investor.
Only Invest Money That You Can Afford to Lose
You should only invest money that you can afford to lose. It doesn’t matter whether it’s pouring money into advertising, cryptocurrency, funds, stocks, or property, the cash you use should not come from your emergency funds or from the budget that you’ll need within a few weeks or months.
Keep in mind that investing means taking risks. And that means you may end up losing the money you invest. You don’t want that to happen if the cash you invested was supposed to be for your bill payments.
Your Investment Shouldn’t Be Based on Trust in People
Regardless of what type of investor you are, you’ll eventually experience losing money when you’re investing. So, avoid investing in something just because you trust a person. You have to do your research. Your investment decisions shouldn’t be based on friendship, familiar relationships, or other such connections. You should be informed so you can minimize the risk once you decide to make an investment.
Go Big and Minimize the Risk
If it’s your first time investing in a particular business, it’s best to keep your investments to a minimum. This way you won’t be losing that much money as you make mistakes in the beginning. But as you go along, you can increase your investments once you reach a point where you’re earning consistently.
Investing in Yourself Is the Best Decision You’ll Make
The best investment that you can make is to invest in yourself. Don’t feel rushed or pressured into pouring cash into businesses that you’re not comfortable with or you don’t like. There will be other investment opportunities that will come your way so maintain your focus and be patient.
Thank you for staying with me until the end. Don’t forget to hit the like and share button. You can check out also this relevant articles such as “5 Golden Rules of Investing Successfully“.
Recommended books for further reading:
- Intelligent Investor: The Definitive Book on Value Investing – A Book of Practical Counsel
- The Financial Times Guide to Investing:The Definitive Companion to Investment and the Financial Markets: The Definitive Companion to Investment and the Financial Markets
- Smarter Investing: Simpler Decisions for Better Results
- Investing Demystified: How to create the best investment portfolio whatever your risk level
- A Beginner’s Guide to the Stock Market: Everything You Need to Start Making Money Today
If you are looking to open an investment account, follow the links below:
(‘68% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.)
Really great investing tips🙌
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I love these! Very useful to me! I will wait for the next blog!