I am not one of those people who will come in the front of your screen on a horse and pitch to you to invest because some stocks are on the rise. Something like this;
”Invest in Org share!!! The market looks so strong and it doesn’t look like it is going to ever drop.”
Hey, if you believe those lies, then you are going to lose a whole lot of money and in that way you aren’t investing rather, you are losing money. If you do not want to be among the people who lose money because they follow what analysts and brokers are saying, then you need to know how to play the investment game. I am not saying that there will be no risk, moreover what is an investment without risk?
When you are about to invest, there are a few things to put into consideration and things not to consider.
Let your Hope Stay Religious and Your Trust with your Partner not your investment
I have heard a lot of people who say they invest because they have faith or believe in a certain broker and I have also heard people say they hope that the stocks will rise, but one obvious truth is hope and trust do not work with investing. If you do not do your research properly, do not invest. Make sure whatever company you are investing in has a good product, and the company is stable. Do not forget to look at the leadership and the financial statement of the company you are about to invest in. it is advisable to invest in companies that have their stocks undervalued but the company is doing well, as this has been Warren buffets skills. Never choose a company because of the name and expect its stocks to grow based on the name behind it.
Buy when the Street is Red
I have learnt one thing, although I learnt it late and that is do not buy when people are optimistic that a high price will never go down. At this point, something is about to happen and it is called a burst and the best thing is never to buy at that time. Buy when the street is bloody, when the market is down and when things do not look good. Buy a house when the real estate market is down, buy goods when they are down and also do this for any kind of investment. Do not be emotional when investing, invest with your brain and not with your emotions.
Greed comes with a fall
When there is a rise in a particular share and you have the urge to sell or you see that it is going towards a bubble, it is advisable to sell off your investment. Looking at keeping for long so as to make more profit is relaxing on a bomb as your shares might lost his entire price and that will be thanks to greed.
Invest in investment that brings returns
If you want to invest in any company’s stock, it is advisable to invest in companies that pay dividends. If you are going to buy a house, you could first rent it out, make money on it while the value of the land and property appreciate, renovate then sell higher. Never invest in things that won’t give you returns because paper money is paper money until they are converted to cash.