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Investment Decision – How to get it right?
Investing money is not a big deal. It’s just another activity in your life. The real deal about investing is investing the right way, and the right way differs from person to person. Your budget, desired profit percentage, goals of investment and other conditions may not be the same as your friend or anyone else who invests. So when you are ready to invest, make sure you’re not copying someone else’s style and ways of investment. It could be coincidental, but don’t force it. You get the gist of it, right?
So now let’s look at some factors you should be wary of before you start an investment.
Goals
Your goals can either be short-term or long-term. And goals can also be negotiable and non-negotiable. For non-negotiable goals like children’s education or buying a house, choose investments that give you guaranteed returns. If your goal is negotiable, meaning if it can be pushed back by a few weeks or months, then invest in stocks or cryptocurrencies. These investments, if planned carefully, can be beneficial for both long-term and short-term goals.
Profile
Another major thing you have to think about before investing your money is your profile. Think about how much you are earning, how many financial obligations you have, and how many people are dependent on you. Don’t jump into something just because someone else made a profit. Analyse your situation, your budget, and future plans before making a decision to invest in a particular plan. If a particular investment option has worked out well for your friend, it doesn’t mean it will work out for you as well. Understand that one size doesn’t fit all. Strategize and adapt as per your profile.
Budget
Last on the list, but probably the most important, defining a budget before you go ahead with investments is crucial. Stocks or cryptocurrencies, always invest the money you can afford to lose, unless you are a professional trader. It may sound like generic advice but running out of money just because you lost a lot in trading is you being plain irresponsible with your money.
As a trader who is just getting started, your goal should be to invest only the money you won’t regret losing. And it doesn’t mean you should not care about losing money, but losing only a little in experiments is part of the learning.
In a nutshell
It’s never too late to start investing. Whether you are in your early twenties or in your fifties, it’s never too late. Sooner or later you will start to realize that life moves quickly. Fear can take control over your mind and you might start getting restless. So it’s better late than never. Make a plan and set things in motion.
Start off small, research well, have a little patience, and before you know it you will have earned a profit. The lifestyle you had always dreamed of is not a myth. It is possible, you can live it. And we will help you.
In the coming chapters, we will explain how to make the best of the cryptocurrency market, how to research, how to invest, what to buy, where to buy and why, and many more. So pay attention.
