"Golden" investment rules

in #investment7 years ago

Before investing in various projects, read the basic rules of the investor. This will help you to avoid serious losses in the future. After all, for an investor there is nothing worse than a disappointment from the loss of own funds. So, let's begin...

For starters, it is always worth remembering that no matter how attractive the project is. The good conditions that suit you are not a guarantee that in the coming months the project will cease to exist. Any investment initially implies a risk. To ensure that the loss of funds was not painful for you, invest only those funds that, in the event of the closure of the project, will not drive you into the debt hole and will not shake your financial state.

Separation of funds

Separation, i.e. diversification of funds is the key rule that an investor should always adhere to, and do not lose one's head under the super favorable conditions of a particular project.

Remember, NEVER invest all your free funds in one project. Even if its owner is your closest relative and he will promise you that for example in a year you will "bathe in gold." It will be best if you divide funds into several parts and invest them in different projects. Consider two examples ....

First option. Suppose you have 1,000 dollars for investing. You invest them in a project that pays you 5% of your amount each month. Provided that every month you will make a reinvest, then in a year you will have $ 1,800. But for the 13th month the project becomes bankrupt, you did not manage to withdraw your deposit plus the profit received and as a result you have left $ 0. Is it offensive? Naturally, but nothing can be returned ...

The second option. You still have the same $ 1,000, but this time you invest the whole amount not in 1 project, but in 20 same ones that also offer you a monthly 5%. In a year, like in the first version, you have $ 1,800 ($ 90 per project). Even if one project closes, you will lose only 1/20 of your funds, not 100%, as in the first case.

If you do not comply with this rule, you can remain without all your capital after a few months of investing.

Invest "working capital"

What is working capital? All your earnings can be divided into three parts. The main part is our daily expenses with you, i.е. food, clothing, apartment, etc. The accumulative part is what you postpone to purchase the things you need. The last part is just a working one, which you are ready to invest in projects.

Invest solely the working part of your funds. Do not invest two or even all three parts of your income. So you run the risk of being left with nothing, or even debt.

Quickly withdraw deposit

If you invest $ 1,000 in a project that pays 9% a month, then after about 8 months you will already have about $ 2,000 in your account. At this time, you better withdraw your initial deposit and leave to work only the profit. Thus, you get rid of the risk of losing your own funds when closing a project.

Trust but check

This rule is more suitable for investing in the network. Every day, scammers who advocate investing in a project that supposedly will improve your financial situation in just a few months will become more and more.

Before investing in a project that someone advised you, ask him for proof of the profitability of the project. Of all such advisors, only a small percentage will demonstrate evidence of the solvency of these projects.

Do not waste profits

Many large investors advise not to spend the profits from the investment, and this should be heeded. Increase your assets, invest the profits from one project to another. Let your money work and your investment portfolio grows from month to month. Do not be tempted to spend these funds on various entertainment or shopping. For this, you have two other parts of your budget.

Observing these five rules over time, you will learn how to properly invest your money and minimize the risk of loss.