7 Tips on Investing for Beginners

By | November 10, 2014

invesmentVarious searching looking for additional income other than regular salary. If you do not have much time for a side job, you better start thinking of seeking investment.

Investment can be done in a variety of instruments, ranging from bonds, stocks, gold, and others. Look for investments that approximately yields (yield) is higher than the annual inflation rate.

Do not let more of your money in the bank just because the longer will be depleted eroded by inflation. Moreover, in today’s entire relationship savings bank providing a very ‘economical’, well below inflation.

Which may be useful to get you started investing. These tips are not confined to the few investment instruments, but as a whole:

1. Invest in the right moment

The first key to successful investing is to know in advance that such a life, the economy is also running its own cycle. Much like the season that runs almost stock every year, as well as in investing.

If you go at the right time in the cycle, then the money generated will be more. One way to see this cycle is still in its early stages or already peak, or even decline will be discussed in the last point.

2. Determine the cycle that fits you

The second key to investing is to know the cycle is in progress. For example, financial cycles in the US who’ve triumphed early 80s to late 90s are over, now they get into the cycle of commodities, such as steel, crude oil, oil and so on.

3. Observe each cycle, select the best

The third key to successful investing is when observing cycles each investment instrument, you can choose which one is ready to cycle uphill. For example, if in the US are currently entered in the commodity cycle, steel could be the most sexy. Now the steel is starting to fall and gold ready to be replaced. If you look at this cycle properly, then it is time you go to buy gold immediately.

4. Find an investment instrument that you control

The key to successful investing is the fourth in choosing investment instruments that you control, even better that you like. There are several options if you are going to start with a capital investment of less than USD 10 million.

  • Mutual Funds, namely the container and the pattern of fund management / capital for investors to invest in a set of investment instruments available in the market by buying mutual fund units. These funds are then managed by the Investment Manager (MI) to the investment portfolio, whether it be stocks, bonds, or money market securities / other security.
  • Purchase of shares in the capital market. By going directly to the stock market, you can have a stake in the companies that you want, just pointing professional broker then you can immediately start. Cost (fee) for the broker is not too high and you can easily diversify to reduce risk.
  • Precious Metals. By buying the metal started, for example gold, you do not need to bother tothe care of. Stay left alone then the price will go up. But, in the midst of a crisis such as the current price is fluctuating rapidly. If you are smart, you can buy cheap and sell at the time when high.

5. Investment Must Arrested for Long Term

The key to successful investing is the fifth to be held for a long enough period of time. This is done to ward off volatility and risk of loss. The biggest mistake often made investors are always too ready to protect his portfolio, so often panic when the market crashed and took off the entire investment.

In fact, should the investor must be sure that the weak trend that is just part of a cycle that will eventually bounce back, unless it is an investment instrument cycle is approaching its peak.

6. Evaluate each investment trends

The key to successful investing is the sixth in an investor are contradictory, but not against the market. For example, when everyone is take action to buy, you must be a seller.When everyone is selling, you should be a buyer. As Warren Buffett said, “you should be greedy when others fear, and fear when others greedy.”

7. Know the peak of the investment cycle before falling

Seventh or last key in successful investing is to oversee the investment cycle peak before falling. An investment will peak before finally entering a downward trend. Indeed, the peak can not be seen by the naked eye, but there are several features that you can consider:

The yield that you get a sudden speeding, higher than that usually you get within a year. Soon this investment cycle will peak.
If all you know, friends, relatives and neighbors to talk about the results of the investment gains earned in the same instrument with you. The characteristics approaching its peak.

If more people start to quit my job and make a living just by selling shares in the stock through online trading, or become a real estate broker. Examples such as these show the investment instruments that have reached peak cycle, it is time you look for new investment instruments young cycle.