5 steps to become a smart investor

INVESTING in can probably be more rewarding than you can imagine and certainly very exciting! World over the wealthiest people are those who have invested wisely.

If you are scared to take the plunge, these are the 5 steps you should be following.

STEP 1. UNDERSTAND HOW THE WHOLE PROCESS WORKS

How did you learn to read ? you started off with A-B-C. First you learned capital letters, then came the smaller ones and finally those running letters. At the end ,you have your own distinguished style of writing and reading . Follow the same logic here. For investing in anything, the first step is to Learn the basics.

STEP 2. LEARN HOW TO CHOOSE

It is important to know how to go about selecting an investment at the right price-be it shares or gold or real estate. A little bit of research, some theoretical and practical knowledge will ensure that things seldom go wrong.

STEP3. DECIDE HOW MUCH TO INVEST

You should not throw all your savings at one particular investment because, any investment would carry certain amount of risk. So the answer to the question how much to invest would depend on your risk profile. ( i.e. your risk tolerance capacity )

STEP4.MONITOR AND REVIEW

Monitoring your investments regularly is recommended. This is more important during volatile times when there can be great opportunities for buying and averaging your cost of investment..

STEP5. LEARN FROM YOUR MISTAKES

Investing is a long, learning experience. You will make mistakes, but also learn from them .When reviewing, do identify and learn from your mistakes. Nothing beats first-hand experience. These experiences will help you emerge as a smart investor.

Stick to these basics and sail smoothly into your financial bright future.

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1 Response to “5 steps to become a smart investor”

jitendra

July 25, 2015 at 12:07 pm

yeah, its correct, just now in hurry i made mistake towards the kwality ltd shares, after a long time i sell it in same purchase price and now almost it’s near to double,

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