What does investment mean?
Naturally, to enter any field, one must be familiar with the concept of that phenomenon, so first of all, applicants for investment must be familiar with this key concept. A general definition of investment is to bring money and cash capital into a market and buy the products of that market to make a profit and increase the initial capital. In other words, investing in simple language means turning money into several types of goods or assets that are not currently consumed and people want to keep it for a while in the future to benefit from its profitability.
Investing in each market is different, because each market requires its own skills to invest. Therefore, experience can play a key and important role for people. If a person enters a market without sufficient experience and inquiry, the probability of failure and loss is very high, because there are certainly other highly experienced people in that market who take advantage of opportunities. However, people with micro-capital can also succeed and multiply their capital if they have enough experience in a market like the capital market.
Ways to invest successfully
There are several ways to make a successful investment, 10 of which are as follows.
Taking the time to study the target market: موفق Successful investors are those who constantly spend their time reading books, newspapers, related magazines and listening to the news to know the latest trends in the market in which they want to invest.
Identifying the target market and forming the optimal portfolio: Among the principles of proper investment, the optimal combination that people choose for their portfolio; It is very important. Investors should try to keep their savings in the form of various assets. Diversifying your portfolio and forming an optimal mix is an important strategy for high returns.
Avoiding risk: The category of investment naturally requires accepting a certain amount of risk. One must accept the fact that he was risk-averse to achieve his goals.
Uncomplicated investment process: It is observed in some cases that some people have several different trading accounts and invest in all of these accounts in the same way. Traders seem to think that by doing so, they are creating a diverse and secure portfolio, while this method is not a portfolio formation and investment diversification, but only makes working conditions more difficult.
Monitoring Market Fluctuations: Today, with the expansion of online analytics and trading platforms in the financial markets, to access the current stock prices around the world, it is enough to have a smartphone connected to the Internet. A high percentage of traders spend a lot of time during the day observing and following the mid-day market fluctuations, which is a clear example of wasting time.
Do not have a short-term view: We should not make decisions based on cross-sectional market fluctuations and we should have a long-term investment perspective as much as possible. Sometimes we may be less productive than our financial goals, and because of this you may feel bad about yourself or the market, which is perfectly normal. But if we have long-term goals, we know we have to draw conclusions based on our long-term performance.
Constant monitoring of their performance: Experienced investors know that the best indicator of future performance is past performance. If you have set big goals for yourself in addition to investing, focus on the strengths that have made you the most successful, avoiding the negatives and the fear of frustrating failure.
Consulting with professionals: We should always try to have experienced and professional people by our side and use their experiences. A successful investor should know that getting help from an expert team or a professional consultant can help him or her thrive.
Strategy Update: Another principle of investing is to update our investment plan periodically after consulting with experienced people. By doing this, we can add practical and new ideas to it and eliminate weak ideas.
Let go of prejudice: We must put aside emotions in investing and not always insist on investing in a particular stock or brand.