Two Step Investing

By | October 21, 2014

investToday many people talk about investing. Of course, this becomes an interesting conversation. Then how do I invest? How good way to invest?

At least, there are two steps that you must do in investing. Both of these measures does not guarantee that your investment will not lose, but at least it can help you to help achieve your investment goals:

Learn as much as possible all the bids and existing investment products

Have you ever thought why you prefer to invest in deposits compared to the example of gold? Maybe because since childhood, your parents used to say that saving should always be done at the bank. Investing should always be done at the bank. This will indirectly make you a “familiar” with the investment in the bank.

Subconsciously you too “close” to an investment in the bank. The result is clear, you prefer to invest in the bank compared to gold or stocks, because you feel more familiar with the investment in the bank. But if you also want to learn about investing in gold or stocks, it is not likely you will also invest into gold or stocks. So, there is no harm if you learn all the bids and the existing investment products, so you can have more choices, than if you just “mastered” the only investment products.

Select investment products

After studying all offers and products existing investments and after knowing the risk comparison between one product with another product, then select the product of your investment.

Choose the easy way. First of all, of course, you have to look at the amount of your first. For example, it is impossible to Rp 200 thousand you invest by buying the land, the land must be purchased with a given number of units rather a lot (a few tens or a few hundred square meters, for example, where the price is very high of course).

After seeing the capabilities of your funds, the second is to select investment products that suit your investment period, where the longer your investment period, it is okay for you to take a more risky investment products. Well, how come?

Logically, the higher the possibility of profit to be had, the greater the risk. Thus, if your investment horizon is short, it is better if you take a low risk investment products, considering you do not have much time to make a profit.

What if your investment horizon is long, it does not matter what your take on riskier products, given the money anyway will you wear in quite a long time. Even if the value of your investment down in the middle, yet you still have plenty of time to raise again the value of your investment. Right?

Again, these two steps does not guarantee that your investment will not lose, but at least it can help you in helping to achieve the investment objective that is in front of your eyes.

Hopefully you are always successful in making investments. And most importantly, do not ever give up on investing if you suffered a loss, because of the silence and not investing is still worse than investing the losers though. Because by trying to invest and lose money, you would have a very valuable experience that can help you to be more successful in investing in the future.