The personal investment boom did not start so long ago, and budding financiers have not yet fully learned to distinguish between useful investment advice from legends and misconceptions, with which the media space is filled.
A large number of video bloggers and information businessmen vied with each other on their own social networks.. Unfortunately, not all of them are correct and can lead to severe losses. Introducing 5 bad advice, which can be found on the vastness of the web.
Buy on growth, sell on the fall
If you buy on the rise and sell on the fall, then losses are inevitable. And not only for this reason, that in such a position you will often buy at the highs and sell at the lows. Reversible rule: “Buy that, what fell and sell that, what has grown ”is also ineffective in itself.
That's not why it makes sense to take a share, that she grew or fell, and since there are significant prerequisites to wait for its growth in the future. Business growth potential, repeating sphere recovery, improving corporate governance, profitable trades M&A - these and other drivers are a more significant reason for buying, than the movement of market prices.
Gain experience, trading shares
Investments and Trading is one of those areas, where you can practice for a long time, but not get any necessary knowledge or experience. The bottom line is, that for itself the process of buying and selling shares is just a matter of pressing 2 keys in the application. With all this, the logic of decision-making from deal to deal can remain similar, despite the abundance in the results and circumstances, which will create the illusion of increasing competence.
Therefore, in principle, not the number of agreements, a thoughtful exploration of causal relationships. First, the research of materiel is extremely fundamental, on which your experience will be layered. Due to what the shares grow in value? What's better: growth stocks or stock prices? What determines the profit of various companies? What's like P / E? Read the answers to these and other questions in our collection I'm new to the securities market. Where to begin
Buying shares is not risky, as the market is constantly growing
Opinion, that the market is constantly growing, became a theorem, transfer?? word of mouth and is often perceived as a thesis, that investing in stocks is a risk-free thought. Let's figure it out, what is really behind these words.
The statement about the permanent growth of the market is rooted in another schedule.
This is the oldest United States Dow Jones market index on the horizon of the latest 120 years. Throughout this period, the index grew, a means, and the stock market grew with it. Based on this, one can imagine, that growth will not stop further. However, it is worth highlighting a number of aspects:
The index contains everything 30 companies, but not all issuers, available on the market. Even S&P 500, which enters 500 Shares, covers less than fifteen percent of the total number of US market issuers.
Companies in the index change frequently. Now completely other companies are included in it., if 30, 50 or 100 years ago. Almost all of those issuers are gone. They were eliminated or absorbed by other organizations..
There have been periods in history, when the index has been declining or has been flat for twenty years in succession. They are seen on the chart. If you look at the indicators of other states, then there such periods can reach up to forty-five years.
Eventually, the growth of the index does not mean, that some of the shares you have purchased will go up. Besides, even investments in an index fund do not guarantee, that in the next twenty years you will receive the highest efficiency. Completely can be, that the result will be only a few percent ahead of inflation. It is fundamental to be aware of this and compare it with your investment goals. More details about that, how to do it, read in specialized material.
Quit your job, start investing
Renowned investment expert Warren Buffett has never surpassed twenty-five percent annual average efficiency. In some years, he managed to increase his portfolio by an order of magnitude., but there were also bad periods, smoothing?? growth curve.
Will you be able to live the least, than twenty five percent of your capital per year? If the answer is no, it's too early to leave work. However, do not be upset, because investments can be fully cooperated with work, at least this is what most of the personal financiers do. But in the future, when the capital increases to the required size, there will be every opportunity to lead the lifestyle of an English gentleman, who lives on the profit from capital and is not burdened with routine worries.
Copy deals of successful financiers and earn a lot of money
In-1-x, successful financiers and exchange traders occasionally expose their transactions to the public and, usually, do not sell paid signals in telegram channels.
Secondly, the essence of successful investments is not, to know, what and when to buy, and in that, to manage risks. To do this, you need to understand, what and why do you buy, what risks do you undertake and in which case it will be necessary to get rid of the asset promptly.
There are really good auto-follow strategies, but they are not based on the decisions of an individual specialist, and on a certain algorithmic system, implementing a specific idea. This idea is being tested on historical data and may show good results in the future.. Choosing a profitable strategy isn't much easier, than choosing a separate stock, therefore, diversification is just as important here.
Important news awaits you here, forecasts and investment ideas, teaching materials, serious analytics and easy reading, as well as a lot of convenient services, including calendars of dividends and buybacks.
