THE DO’S & DON’TS OF INVESTING

THE DO’S & DON’TS OF INVESTING
November 9, 2017 Modebola Olowu
do's and don'ts

You have now made up your mind to invest, so it’s important you understand what you should do and what you shouldn’t do… We will be looking at what is necessary? What is a must? And what is not.

 

The Do’s of Investing.

  1. Research! Research! Research!

Just before locking your hard-earned money into a stock, bond or other market investments, be sure it’s worthy of your money and it will bring in great returns; It’s also important you consider the advice of your finance advisors and you allow them research further on what you have researched on.

  1. Use a financial advisor.

It’s effective to use recommended financial advisors, fin-tech firms, banks and other financial institutions to help you with research and in giving rich advice. We all know the services mentioned are not free, they could incur extra cost, but it’s worth it, so far you are getting better investment decisions that lead to improved long-term returns.

  1. Invest in Long term assets.

It’s okay to invest in short term assets, but it’s most profitable to go for the long term ones. It may be disappointing that you will have to wait, but it follows the saying… ‘The patient dog eats the fattest bone.’ Over time it appreciates and covers more grounds than the short timers.

  1. Understand what and where you are putting your money into.

It’s paramount you only invest in things you understand before going ahead. It’s wrong to invest money yourself or have other people do it for you without understanding how the investment works and the kind of assets you can invest in legally.

  1. Review! Review! Review!

Review your investment schemes regularly and in real time. Goals and financial circumstances change over time, it will therefore be of great benefit to keep your mind open to new approaches and updates to upgrade your portfolio.

This is a common sermon we preach to investors to adhere to, as it promises far better returns than investing in one asset. The beauty of having more than one is the joy you derive from one failing and the others maturing at the peak of returns profit.

 

The Don’ts of Investing.

  1. Don’t Over invest:

This is just pure poison, I know it’s normal to want to pour more money into your investments, especially when you are getting positive returns in a large scale; this can also be very detrimental, because you are not following the natural law order. Have you heard of Emergencies, Economic melt downs etc. Also anything can go wrong, so only invest in what you can afford to lose without breaking away.

  1. Don’t Be greedy:

This is my favourite ‘don’t’… It’s very hard to stay hungry but it’s very easy to be greedy. Greediness is the first downfall of any investor. Just know when to sell your “winning” stocks and your “losing” stocks, no matter how much you like them, it’s always about winning, so be positive minded and not greedy.

 

  1. Don’t Wait:

Here we will be following Nike’s mantra, ‘Just do it!’ yes, please just do it, there’s no perfect timing to investing. After your research just enter the market.

 

  1. Don’t get emotional:

Getting emotionally attached to investments that have obliged you well in the past, but are no longer performing well; or are no longer suited to your needs is one of the poorest and highest mistakes to make as an investor. Never get Emotional, it’s simply business.

  1. Don’t be a joker:

Never buy at the top and sell at the bottom, most times rookie investors put money into the market and only end up selling when the prices fall. Be a Batman and save the day… Connect and network with the right (and legal) sources to sell at the most profiting hour.

 

 

 

 

 

 

 

Comments (0)

Leave a reply

Your email address will not be published. Required fields are marked *

*