5 laws of successful investment
To become an investor, it is not enough to invest in a project and wait for an increase in profits. Investing is a science. But science is interesting and rewarding.
It is enough to learn the basic rules once, and in the future you will simply evaluate all investment instruments from the correct point of view.
The first rule is a financial plan. You should have a clear goal of what you want to achieve with your investment. And a financial plan to achieve it. The plan includes all income, all expenses, airbag and capital for investment. On our blog there is an article on this topic , read it.
The second rule – invest in assets that you are well versed in. You do not need to buy real estate with a mortgage if you do not understand its appraisal. There are a lot of parameters that you need to pay attention to: the area – how popular it is, whether it has a perspective, location – how accessible the area is, whether there is transport, how many roads are there, whether it will be convenient to get there, etc., building materials – how high-quality the walls are, will they freeze through, are the communications carried out correctly, will the water reach the 25th floor, etc., infrastructure – are there schools, kindergartens, clinics within walking distance, will an ambulance or firefighters be able to reach you in case problems, etc., pricing policy – what is the price growth forecast based on, if it is announced, or why it is very cheap, what could be the problem, is everything clear with the documents, how reliable is this developer, etc. All points must be taken into account. If you are not sure that in 10 years new buildings in this area will not turn into a ghetto, it is better to refrain from such an investment.
Absolutely any asset can be described in the same way. Until you study it inside and out, it is better not to risk large sums.
The third rule – control your investments. Do not take borrowed funds for investment. Invest only the amount you can afford to lose in the event of an adverse situation. Divide your investments into short, medium and long term. For each type of investment, you must have a specific goal. Marat Amirovich Mynbayev spoke about the types of investments in detail in article on vc.ru .
The fourth rule is diversification. Separate investments by different instruments. Buy shares of different companies, real estate in different regions, cities, countries. If it’s a cryptocurrency, invest in different coins, use different accounts. Trade on different exchanges and so on. Always leave part of your investment in highly liquid instruments to be able to cash out quickly when the need arises. You can find out about all the investment instruments on our website .
Fifth rule – ratio of loss to profit 1 to 3. Your risks when investing should be three times less than the expected profit. Many people never start investing for fear of losing everything. Control your emotions and learn to manage risks wisely.
Approach investments with a “cool” head, study information, apply knowledge and you will succeed!