Many of us are getting to a point in our a life that we are looking to build a better financial position for ourselves and our families. Investing our many can be fantastic for that reason.
Unfortunately, a well maintained financial portfolio will not just pop-up to our life. We have to start somewhere and slowly cultivate our investments if we want to lower are risks and increase our chances of stable ROI (Return on investment).
RULES ARE MANDATORY!
In the previous course, we went over the definition and concept of risks and rewards. If you did so, we all can agree that the greater the risk, the greater reward. For those of you who are looking to mange their own portfolio, the greatest success tends to come for those who stick to their own set of rules.
We hear investors saying:”A part of my investment should be cryptocurrencies” and “I will think about selling if the value starts to drop” aren't good enough – set yourself more specific values for how much of your portfolio should be dedicated to cryptocurrencies and when exactly will you sell.
Sticking to your own rules will help you avoiding emotions and grid from your investments.
GOT A GOAL? WRITE IT ON PAPER.
We all wants the highest possible returns for the lowest possible risk, then what?
Unfortunately with minimal risk comes minimal rewards, and vice versa. If you heard stories about safe investments that guarantee a return of above 10% or higher, we are sorry to disappoint you. Those types of investments simply don't exist. If you are looking only for low risks – don't expect high returns.
The real risk comes when your investment is bigger than what you can afford. A healthy investment is not the one that will take your sleep away from you because you are worried. Better think about an amount which is appropriate to your financial situation.