Finance & Loans
HOW TO MAKE GOOD IVESTMENTS
June 14, 2011 by creative · Leave a Comment
We all want to get the best return from our investments. But you need to spend considerable time to decide which the best option for you is and unknowingly make many mistakes. These are some facts to consider before making an investment.
1. Diversify your investments
Do not invest all your money in one place; expand your portfolio to include stocks, real estate, mutual funds and bonds. By doing this you are not risking your entire investment.
2. Avoid borrowing money to invest. If the investment fails you will end up with a debt which will affect your credit score.
3. Have a strategy. Know what you want to invest in and for how long. Follow the markets carefully and make your move. Do not wait for the market to reach the highest (in the case of selling) or lowest point in the case of buying. Do the transaction before it reaches that point. By waiting too long you might lose the opportunity if the momentum shifts.
4. Seek professional advice unless you have plenty of experience. It may cost money but will make you more in the long run.
5. Educate yourself about making investments.