Here I will give you three tips to learn to invest intelligently without it representing a problematic expense.
To give you these tips, I have referenced the book “The Intelligent Investor “by Benjamin Graham.
What Does it Mean to be an Intelligent Investor?
According to Graham, the meaning is quite simple and is based on three pillars:
Be patient
According to Warren Buffet, the investment market is a game in which those in a hurry give their money away to those who know how to wait. It means that when you start investing, you must be very clear that this is a long road, and if you think that you will only recover your investment in days, you will be very disappointed (and your wallet too).
Have emotional discipline
When you start investing, many things can go wrong. In the same way, you may multiply your investment; you can lose it all. This risk often leads to a series of rash and emotional decisions, prompting new investors to act on sheer instinct or emotion, not letting rational analysis guide decisions.
Here comes the term emotional discipline. If things start to go wrong, you should be aware that it could happen, and that is not why you should start making arbitrary decisions with your portfolio, but rather act based on what you have learned and have been planning. The same thing happens when something goes well. You should not trust yourself and start throwing yourself without analyzing it objectively first, avoiding letting yourself be carried away by emotions.
Always be eager to learn
In the world of investments, information is always your best ally. It is why you must always be willing or willing to learn more and get to know the industry you are entering. There will always be best practices to master, and industry reports to read, and professional analysis to investigate. These information points will be invaluable when deciding on your portfolio and avoiding falling into the abovementioned points.
Three Common Mistakes when Investing
Considering these considerations, I want to mention the possible mistakes you will fall into (or have already fallen into) if you are not cautious or cautious when investing.
- Speculate by guessing instead of investing
When you measure the wind with your finger or get carried away only by your emotions, you are not investing; you are speculating without support. It is only guesswork and is not technical to help you make it a sustainable practice.
- Speculate without the necessary skills
When you still do not understand how the platform you are investing in works or do not know how to carry out essential activities within it, it is not yet time for you to start investing. These platforms usually have a trial balance that you can use as an experiment to use in simulated investments and develop your knowledge. There are also methodologies, techniques, and routines with which you must familiarize yourself if you want to invest correctly. Don’t run before you walk.
- Risking more money than you are willing or willing to lose
As I mentioned initially, losing everything is never a possibility in investments. When you become an intelligent investor, you reduce this risk to a minimum. That is not why you should put aside the clear notion that all that money can vanish, so the money you decide to enter the investment market is capital you are sure could disappear.
Do not invest money you have obtained through debt or with which you thought to pay critical pending in your life, believing you will support and recover that money later. It is too risky a bet and could compromise your financial (and emotional) stability.
Suppose you want to improve how you manage your income and allocate it appropriately to your financial growth. In that case, you can take the budget and cash flow course, turning every dollar that comes into your hands into more optimal capital. Also, know the basic principles to start saving and look at these five techniques.
Where to Start Investing
Trading
Also known as day trading, it is the field of investments in which it is sought to generate value through speculation with the fluctuating value of shares in the short term. Platzi has an introductory course to Trading with Mario Valle that will help you understand this world better if you are thinking of investing in it.
Short- or long-term selectivity
Compared to riskier options. It means buying shares of companies reporting or is expected to report higher earnings based on their latest financial statements or others that have sustained growth over the years and are considered a safer bet but less profitable. Put these seven tips into practice so you can start investing today.
To venture into this discipline, become more suitable for this type of investment and take advantage of its benefits, we have the course on basic investment principles with Misfit.
These options are part of a healthy personal finance management habit, which is something you can learn. Look at these three tips to improve your finances.
Please get to know our finance course and become a machine for optimizing resources for the future.
I recommend that you visit our blog about taxes. I know that it will interest you, and they will help you if you enter the world of investments.
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