Today, many people want to multiply their available funds through investments. Of course, it is impossible to do this at the snap of your fingers, but if you take into account the important nuances, then you can avoid common mistakes newcomers to the stock market. What rules of the game should an inexperienced investor take into account? And where to start your journey to making a profit? This was announced by Andrey Evstifeev, senior managing partner, vice-president of the European Legal Service Group.
1. Determine for yourself the amount you are willing to say goodbye to.
It is better to start investing with the “dead money”, which you agree to say goodbye to in advance. This is not negative thinking, but reality and a trial balloon – preparation for future successful investments.
Few people manage to fill their pockets with gold coins from the very first attempt – as a rule, a person becomes a real investor only after losing his money once or twice and stuffing big bumps. But you need to fill them not with the last money and not with a bank loan. Decide in advance how much you are willing to allocate for the first investment attempt. Will the possible loss of this money make you change your usual way of life? Will you have to sell your car or give up your vacation? If everything is in order, boldly set out on a path that has not yet been explored for yourself.
2. Develop a plan for developing yourself as an investor.
The main thing is to understand where you want to go and what to get in the future. To do this, determine how much you are willing to invest now and in the future. What terms of the deals suit you, what strategy you will adhere to. At the same time, any path is impossible without mistakes, so it is important to perceive losses and losses as “paid lessons” that will help you learn how to invest in the future.
Also, do not invest in areas in which you do not understand anything. This is definitely not a good idea to start developing yourself as an investor. Or choose business planes that seem closer and easier, or seek detailed advice from a specialist. In any case, it is better to pay for a meeting with a professional than to make a rash and ineffective investment.
3. Don’t expect quick profits and choose trusted companies.
Everyone wants to believe that by investing one hundred rubles, one can earn one hundred thousand. But let’s look at things realistically: only a few are so lucky once.
Investing is not quick money, but strategic planning and growth of profitability in the future. Thus, it is better for beginners to choose proven securities: pay attention to large and well-known companies. Their stocks are called blue chips. For example, in our country these include LUKOIL, SberBank, Gazprom, etc.
Yes, the profitability of such stocks will not be fabulous, but among the advantages are stability, confidence and the ability to learn how to work with investments.
4. Diversify your portfolio.
Remember, an investment portfolio must be variegated. For example, ideally only 10% is the maximum allowable share of the same shares. Also, when investing, you should not focus on one business area, investing only in construction, IT or other companies. The more diversified your portfolio is, the more chances you have to become a successful investor without putting all your eggs in one basket.
5. Monitor and analyze all steps.
Equally record your successes and failures – all are the results of work. Not only the purchase and sale of shares, but also the state of the market, changes in the value of securities should be subject to counting and control. This is the only way to understand whether you are taking the right steps. Write down and mark all important changes in the market, analyze seasonality. In the future, such work will help to compare your results for different periods (six months, a year) in order to decide where to move next.
At the same time, it is not necessary to evaluate the results for a shorter period – it is pointless! You can check whether your strategy is working only after at least six months: an investment is a long-term project.
6. Constantly learn and learn new things.
This is not only about the field of investment or stocks, but also about business processes in general. You need to keep track of all the loud news, follow the big deals on the market. These are all important for making your investment decisions.
For example, since May 18 this year, at two factories that are engaged in bottling the famous mineral water “Borjomi”, there is a strike of employees, they are demanding higher wages. In general, such situations may temporarily affect the share price.
Today, there are even special sites and applications where investment news is collected in one place. This allows you not to track them in different sources, which significantly saves time.
7. Don’t be afraid of crises.
Accept in advance the idea that falls and corrections periodically occur in the investment market. Less often – large, more often – within 5-15%. You just need to wait out such a period. Especially if you own blue chips – nothing to worry about! After some time, everything will be restored.
8. Control not only income, but also expenses.
In addition to profit, do not forget to count how much in