Your money is evaporating in your savings account, it’s time to fill your pension gap, or you just want to cash in: plenty of reasons to invest. But where exactly do you start? What are the pitfalls?
Earn money by investing in Safe Alternative Investments. It sounds so exciting, especially now that you receive very little interest on your savings. But if you’ve never invested before, it can be exciting, that capricious financial world full of new terms, opportunities and dangers. Look at the news about collapsing stock markets due to the covid & rescission. Don’t you need to know a lot about it before you start? And where do you even start?
A mistake that we see with many beginners is that they start without the right knowledge, then make a profit with luck and then go wrong. They start thinking: I’m good at this, I’m going to bet five or ten times as much money now. This costs people dearly in almost 80% of the cases.” Many people go wrong if they do not stick to their own strategy: “You start with a plan, which you put on paper.
You then have to stick to it to achieve long-term success. If you don’t stick to your plan, or you blindly follow the strategy of others while you secretly have no idea what you’re doing, things will go wrong.”
You Start With a Strategy. How do You Determine it?
“You put your financial goals on paper. Then you decide what you want to buy. You can buy shares, but also bonds*. Or you opt for Safe Alternative Investments. Then you see what money you can free up for this.
Do you Need a Lot of Brains to Invest?
“You can immediately get into a racing car and do a lap, but you don’t know how long that will go well before you crash. If you know what forms of investing there are, and know the basics, you will be better prepared.”
Spread your risk, then stay away from it. Do not let them get to you. Research shows that a long breath works best. Remember that there may be years when you can make a 27% loss. The way up is erratic. No one knows exactly how it will turn out, recognize that no one really knows. You also don’t have to know everything or know every CEO to go public.
If you’re going for a run, you can go outside and go for a run. But you also have people who first need new shoes, an outfit, special socks and a watch, and then don’t start. You can also carefully see if it’s something for you. Then you can always buy that trendy sports outfit afterwards.”
If you invest in the longer term, you are less sensitive to this. Even if you experienced the previous stock market crash, you would have made a profit with the subsequent recovery.”
Expand your horizons and invest outside your own sector. Make sure you invest in a sufficient number of different sectors. This reduces the risk and the possibility of a good return remains the same
A Common Mistake Investors Make is Timing Them Wrong.
Timing : Entering and exiting the market at the right times with the aim of achieving an optimal return. Every investor knows that it is crucial to get in at the right time. When the stock market is at a low point, you have to buy. After a scenic drive up, disembark at the highest point. This is the way to make returns. Many investors get this wrong.
Timing is not possible, because nobody knows what will happen. Investing does work if you have the time and can handle price fluctuations. The easiest way to achieve that? Make a plan and have a goal. The most important? Don’t look too often and let someone with less emotional involvement in your assets help you make decisions.