Basic knowledge to know before you start investing

Basic knowledge to know before you start investing

Investing is one of the ways that help build wealth and increase financial opportunities in the long run, but before stepping into the investment world, investors should have basic knowledge to hedge risks and increase their chances of success.

‍

Understand yourself before investing

Financial goals

You need to know what to invest for, such as retirement, buying a home, or earning extra income.

Acceptable level of risk

Each person has a different capacity for taking risks. Some are very resistant to losses, others need stability.

‍

Risks and rewards

1. The simple principle is “The higher the risk, the higher the return”
2. Safe investments, such as bank deposits, low returns
3. High-risk investments, such as stocks or crypto, have a high chance of return, but can also lead to significant losses.

‍

Diversification

1. Do not put all money in one type of asset.
2. Diversifying portfolios such as stocks, funds, real estate and crypto reduces the chances of severe losses.

‍

Study of invested assets

1. stocks: Company Basics, Performance and Industry
2. Mutual Fund: Understand the fund manager's fees and strategies
3. Cryptocurrencies: Understand technology and high volatility
4. Gold/Real Estate: Study of economic and demand-supply factors

‍

Investment Management

1. Invest with cold money (money that is not needed in everyday life)
2. Allocate an appropriate proportion of the investment, for example, 10— 20% of income.
3. Establish an investment budget that does not affect the necessary expenses

‍

Have discipline and a long-term perspective

1. AVOID IGNORANT “SPECULATION”
2. Main fastening Long term investmentBecause asset growth opportunities always come with time.
3. Do not make decisions based on currents or emotions

‍

Learn and develop yourself

1. Read investment books
2. Follow economic and financial news
3. Learn from a successful generation of large investors
   ‍

Investing is not difficult, but must be lived Basic knowledge, self-understanding and investment disciplineIf you start from small things, gradually learn and plan carefully. Investments will become a powerful tool for building a stable financial future.