As discussed in the earlier posts like 4 Golden Rules of Equity Investing and 3 important things to know as a new investor!!!, I am again going to write for the investors who are still in the dialema whether or not to invest the very first time. And even if they make their mind to do so, then will I make any profit out of it, will I lose all my money. So, I am again taking the perspective of the very first time investors.
As I said, every investor has had to go through the phase of first time investment. The most successful people in the investment market has been through this tricky junction at some point of their life. So, how does one avoid those double minded questions when he/she is investing for the first time? So how does one prepare oneself for the best possible outcome.
1.Decide the mode of investment: When you are investing for the very first time, the most important thing to choose is a solid way of investment. One of the oldest ways is to invest in a savings bank account, which would give you good returns and is generally not much comparable to other means of investment. There are other ways to ensure higher returns, but this could be a bit risky for the first time investors. So, only after having complete knowledge of all the investment options available, one must opt to the option that suits his/her portfolio the best.
2.Proper understanding of the selectedbest investment option: One cannot make profits consistently if one lacks knowledge about the investment market. If one is investing in a bank, he must have a clear idea about the rules and policies associated with the investments options, and must plan according to it. If investing in the stock market, it is extremely important to have thorough knowledge about the market. One should be totally sure about the basics of the market, and its functioning before making an investment in the extremely volatile marketplace.
3.Choosing the best broker or investment advisor: If you are investing in stock market, one needs to find the proper broking firm that would offer the best online trading facilities at a moderate price. There are some broking firms that have special orientation programs for people who are in the market for the first time to invest. One must consider these factors while choosing a broker. In case of other forms of investments, it is better to consult a financial advisor. Nevertheless, one must be careful to select a solid and loyal financial consultant, which would provide the proper guidance through the initial phase.
4.Being positive about the investment: The fear of making losses ideally should not stop one from taking investment decisions. There are people who are over cautious and the fear of losing money and create a position where they fail to act. Particularly in stock market, in the most likely case, everyone is bound to experience loss in their initial trading days, but once the basics are grasped, the profits that follow make more than enough to cover the initial losses. Therefore, one should always be confident about their decisions, and the fear of losing money should never break their confidence. Moreover, an investor should commit his energy and time along with money while making an investment. This is because of the simple fact that money cannot make money, unless it is being worked upon and that can only happen when our complete efforts are committed to the cause. So, go ahead invest and make profits 🙂
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