1. Invest all your money in stocks, you can even borrow for such a thing
Expert's comment
Before investing in stocks, set aside money for life and unforeseen expenses: create a safety cushion, open a bank deposit or buy low-risk bonds. Remember that investments are always risky and you can not only earn a lot, but also lose everything. Invest the amount that you are internally willing to lose — alas, this is possible. Do not borrow money for investments either in a bank or from friends — you can never invest the last money. Before rushing into battle, study the theoretical part.
2. Don't waste time managing your investment portfolio: I hired a professional and forgot
Expert's comment
There is an opinion that if you decide to trade on the stock exchange, but are not ready to waste your strength and nerves, then you can just trust the professionals and forget about everything in the world. But you also need to pay attention to the trustee, at least at the beginning of your relationship. He should be aware of what your life needs and plans are in order to choose the optimal scheme of behavior in the financial market for you. And who said that all trust managers are professionals in their field and decent people? The principle of "trust, but verify" is also relevant here. But to check how trust management is carried out, you need knowledge that, alas, no one will acquire for you. So you still have to spend time.
3. When investing, forget about the peculiarities of your character and temperament
Expert's comment
When determining the tools that you will use, correlate them with the characteristics of your character. Brokers joke: "If you buy bonds, you sleep well, if you buy stocks, you eat well." There is some truth in this — sometimes stocks make investors nervous. If you are too emotional, seriously worried about losses, then trading "with a shoulder" (that is, with a loan provided by a broker) and investing in stocks is not for you: there is a risk of making wrong decisions in a panic and aggravating financial losses. And stress has a bad effect on health. Invest in risky instruments only if you calmly tolerate losses and can act coolly.
4. Make as many trades as possible
Expert's comment
Frequent transactions in the securities market can lead to the loss of your strength, energy and even money. And do not forget about the broker's commission, which you will also have to pay from each transaction. Speculative strategies do not always bring more income, in most cases a passive investor earns more. Although there is a joke that a long—term investor is an unsuccessful speculator. Choosing the optimal strategy for you depends on many factors, including what knowledge and skills you have, so treat this decision very carefully.
5. Don't stop, take it out on the falling market
Expert's comment
This advice is illustrated by the saying "A father beat his son not for playing, but for taking it out." If the market is not going in your direction, it is better to stop, exhale and take a breather. In this case, to complete the bidding (to perform a stop loss) means not to give up slack, but to avoid even greater losses. And you always need to know exactly how much you are willing to risk and what rules for closing a position you have agreed with the broker. It is not uncommon for a client to lose everything with the help of a "leverage" — a loan provided by a broker — in excitement and still owed exorbitant amounts. Do you need it?
6. Use insider information
Expert's comment
Insider information gives the owner a non-market advantage, which is why its use in financial market transactions is prosecuted by law. Are you ready to serve four years in places not so remote and lose your business reputation forever? In my opinion, the answer is obvious.
7. It is better to "multiply" than to "save"
Expert's comment
"Save" and "multiply" are two different investment strategies. They assume not only different goals, but also different tools, knowledge and skills, investment horizon, level of accepted risk. With regard to the financial safety cushion that may be needed at any time, the "save" strategy is the most adequate. This strategy requires a minimum of knowledge and effort, but it allows you to outrun inflation, that is, to preserve the purchasing power of your savings. The "multiply" strategy is adequate for money that you do not plan to spend in the foreseeable future. By investing, you can multiply your funds many times, but you can also get a negative result. Don't go to a fortune teller here — you will need additional knowledge so that the result meets your expectations.
8. Trust the advice of professionals
Expert's comment
The best strategy is to have a rational—skeptical attitude. In the financial market, especially if we are talking about investments and not savings, it is better to double-check the advice of a banker or broker. Perhaps, by giving you advice, they are pursuing their own, and not your goals at all. Be especially vigilant when it comes to free tips.
9. Count on a stable financial market
Expert's comment
No one predicted the mortgage crisis in the US in 2008. But this event happened and greatly affected the financial market. You can't be sure that there will be stability forever and nothing will happen — anything can happen, and much faster than you would like. Remember that investments are always a risk, and you need to work with risks in real time.
Expert's comment
Before investing in stocks, set aside money for life and unforeseen expenses: create a safety cushion, open a bank deposit or buy low-risk bonds. Remember that investments are always risky and you can not only earn a lot, but also lose everything. Invest the amount that you are internally willing to lose — alas, this is possible. Do not borrow money for investments either in a bank or from friends — you can never invest the last money. Before rushing into battle, study the theoretical part.
Expert's comment
There is an opinion that if you decide to trade on the stock exchange, but are not ready to waste your strength and nerves, then you can just trust the professionals and forget about everything in the world. But you also need to pay attention to the trustee, at least at the beginning of your relationship. He should be aware of what your life needs and plans are in order to choose the optimal scheme of behavior in the financial market for you. And who said that all trust managers are professionals in their field and decent people? The principle of "trust, but verify" is also relevant here. But to check how trust management is carried out, you need knowledge that, alas, no one will acquire for you. So you still have to spend time.
3. When investing, forget about the peculiarities of your character and temperament
Expert's comment
When determining the tools that you will use, correlate them with the characteristics of your character. Brokers joke: "If you buy bonds, you sleep well, if you buy stocks, you eat well." There is some truth in this — sometimes stocks make investors nervous. If you are too emotional, seriously worried about losses, then trading "with a shoulder" (that is, with a loan provided by a broker) and investing in stocks is not for you: there is a risk of making wrong decisions in a panic and aggravating financial losses. And stress has a bad effect on health. Invest in risky instruments only if you calmly tolerate losses and can act coolly.
4. Make as many trades as possible
Expert's comment
Frequent transactions in the securities market can lead to the loss of your strength, energy and even money. And do not forget about the broker's commission, which you will also have to pay from each transaction. Speculative strategies do not always bring more income, in most cases a passive investor earns more. Although there is a joke that a long—term investor is an unsuccessful speculator. Choosing the optimal strategy for you depends on many factors, including what knowledge and skills you have, so treat this decision very carefully.
5. Don't stop, take it out on the falling market
Expert's comment
This advice is illustrated by the saying "A father beat his son not for playing, but for taking it out." If the market is not going in your direction, it is better to stop, exhale and take a breather. In this case, to complete the bidding (to perform a stop loss) means not to give up slack, but to avoid even greater losses. And you always need to know exactly how much you are willing to risk and what rules for closing a position you have agreed with the broker. It is not uncommon for a client to lose everything with the help of a "leverage" — a loan provided by a broker — in excitement and still owed exorbitant amounts. Do you need it?
6. Use insider information
Expert's comment
Insider information gives the owner a non-market advantage, which is why its use in financial market transactions is prosecuted by law. Are you ready to serve four years in places not so remote and lose your business reputation forever? In my opinion, the answer is obvious.
7. It is better to "multiply" than to "save"
Expert's comment
"Save" and "multiply" are two different investment strategies. They assume not only different goals, but also different tools, knowledge and skills, investment horizon, level of accepted risk. With regard to the financial safety cushion that may be needed at any time, the "save" strategy is the most adequate. This strategy requires a minimum of knowledge and effort, but it allows you to outrun inflation, that is, to preserve the purchasing power of your savings. The "multiply" strategy is adequate for money that you do not plan to spend in the foreseeable future. By investing, you can multiply your funds many times, but you can also get a negative result. Don't go to a fortune teller here — you will need additional knowledge so that the result meets your expectations.
8. Trust the advice of professionals
Expert's comment
The best strategy is to have a rational—skeptical attitude. In the financial market, especially if we are talking about investments and not savings, it is better to double-check the advice of a banker or broker. Perhaps, by giving you advice, they are pursuing their own, and not your goals at all. Be especially vigilant when it comes to free tips.
9. Count on a stable financial market
Expert's comment
No one predicted the mortgage crisis in the US in 2008. But this event happened and greatly affected the financial market. You can't be sure that there will be stability forever and nothing will happen — anything can happen, and much faster than you would like. Remember that investments are always a risk, and you need to work with risks in real time.