When you are looking at an investment you should know some of the important investment steps, so here they are:
- Your expensive loans should have been paid off. That means make yourself debt free from other than a housing mortgage.You should be ready to invest at any time.
- You should know the absolute basics such as Debt, equity, conflict of interest, mutual fund, hidden charges, term insurance, budget ,etc.
- You have to find your own adviser.Research about him. Trust, but verify. Once you trust, let go.Resolve conflict of adviser.He may be inexpensive. However, inexpensive need not mean cheap.
- You need to understand your assets and liabilities in order to start your new life, set your goals and set up an emergency fund.
- Keep monitoring but you cannot go too wrong.Invest your money in the best fund houses and schemes.
- Overconfidence leads to over trading often, taking unnecessary risk and eventual losses is the thing that when the bull turns as bear. Also remember that you incur commissions every time you trade - this expense can often erase profits or increase losses.
- Patience is the virtual thing that pays for itself. When the market or stock get dips, there are always investors who panic and sell. Selling should be treated just as seriously as buying.
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