5 Things Before Investing

Do Not Be Involved in Entering the Market, Understand These 5 Things Before Investing

Investing in any type is actually easy to do, if you understand the knowledge. In order to get the maximum investment return, you need to really understand good techniques when the time is right to enter and exit the market. Don’t forget to continue to do research and control psychology so that it is not easy to be emotional when investing.

5 Things Before Investing

In addition to the factors we have mentioned above, there are other things you need to pay attention to in order to be successful in investing. Whatever type of investment is made, there are at least 5 important things to consider before entering the market.

1. Do not be easily tempted by a large return, learn to recognize investment

Beginners who are new to the investment world are often tempted by investment returns that are lured by reliable marketing people with words. Know that entering the market just because it is tempted by a large return without knowing the investment made is great ignorance.

The above is the same when you go shopping to the market and buy lots of meat without knowing how to distinguish fresh meat and rotten meat. If your luck is good, then you can get fresh meat and if it’s bad, then you can be fooled and get rotten meat.

Tempted and interested in investments that have attractive offers are natural.However, that does not mean you immediately agree with the investment offered.Take the time to learn for yourself about the ins and outs of existing investments.If the investment that you will do is related to depositing funds to another party, make sure the party is credible and trustworthy.

A simple example, if you want to trade on the forex market. The important thing to do is to know the existing rules, the forex broker’s track record, and the reputation they have.

2. There Are Influences, Not Meaning To Have Perfect Correlation

When you observe the news in the world of financial investment, there is often news that something happens because of X. For example the US dollar strengthened because of rising oil prices or company A’s shares declined because of falling oil prices.

Things like the above can happen at a time. The most important thing when addressing the above situation is not to assume that there is a perfect correlation of these two things. Thus it does not mean that the company’s share price A must move in line with the price of oil as the example above.

The example above is very similar to throwing a coin with 9 times out of the head.When you will throw a coin for the 10th, not necessarily the next one is head again.

Oil prices are one of the factors that can affect the US Dollar and company A shares, but the relationship is not perfectly correlated.

3. Investment is very tight in relation to uncertainty

When you are just entering the world of investment, about uncertainty you rarely realize. But as time goes by and the longer you are engaged in the world of investment, you will slowly understand that uncertainty is a natural thing in the world of investment. Understand well that the world of investment is closely related to uncertainty.

Many factors cause uncertainty and it always changes. For example, when a Central Bank official issues a speech relating to a good aspect of the economy, he will surely slip into words to be careful with other factors. Don’t worry too much about the problem of uncertainty when you’re investing.

Even though later this uncertainty can make you lose, then understand that the investment will definitely cause a loss and that is natural. The important thing for you to do is to apply good and proper investment diversification and money management.

4. No Party Can Control the Market

You must often hear about the existence of an international conspiracy and the power possessed by world billionaires. The reality you have to face is that no party can fully control the market.

Investors who are still learning and small and think they can control the market are an illusion. Even though you can get profits many times in the investments made, then don’t immediately be angry and arrogant with the circumstances.

The above also applies when there are parties who offer you about investments with very large returns in just a short time. Believe that nothing is easy to get something, it takes a struggle and a process to achieve a high and consistent return.

The investment you make is something of uncertainty and no party is able to control the market in full.

5. Start Changing Habits Slowly

So that you can change lives, the important thing you can do is change the habits. This also applies to the successful investment that you will get, where you need to change the habits that are in yourself. The habits we mean here have a lot of things, ranging from things about how you treat money and how you deal with the right situation when making a mistake.

You who often waste money on things that are not clear, then start changing these habits when you start investing. Learn to begin to understand whether something right is done or not.

You will find the risk of loss, therefore it is necessary to understand whether the risk is the same as the potential profit you get. The way you measure this will determine the success that will be achieved when investing.

Learn to improve yourself when you start investing, do not be easily angry and upset when your mistakes are made in investing. The more flight hours you have, the better you will handle situations like this.

If not you don’t want to change old habits when you start investing, then investing successfully will be very difficult to achieve.

Learning to change bad habits slowly, because habits that are changed suddenly can be difficult and usually won’t last long. Good habits need to be built by repeating small actions for a long time. So that it can become a habit that you do as a successful investor.

By being able to get used to good habits, you will find that you have developed into a person who is better than before. This is very important if you want to be successful in trading.

Those are 5 important things that you need to understand well before starting investing in any field.

Hope to inspire!


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