Dos & Don’ts for Successful Investment
Do make sure you understand all the investments you are making. Learn some basics on investments before you step in. Only invest in things you understand. You are taking unnecessary risks if you invest simply based on your gut feelings or other people’s judgements.
Do invest for long term. Investments do fluctuate in value, for example stocks and shares. However, this matters less in the long term as the ups and downs in the market will eventually even out. Thinking long term will give your more confidence and ease your worries on fluctuations in the value of your investments.
Do invest rationally. Be aware of how much money you have for investments. Do not put your entire savings into the market because profit is never guaranteed. Use strategies instead of random guesses and media speculation.
Do get rid of unprofitable investments. When an investment is losing your money, sell it. Use the money in other investments rather than letting it sit there and lose value.
Do not panic. Values of investment will fluctuate. Price decline is a norm in any equity market. When its value goes down, acknowledge that the market is volatile and stay calm. Stick to your strategies.
Do not listen to rumours. Be suspicious of ‘insider news’ or tips that promise to earn you big bucks in shortest time. Assess them with your knowledge and judge for yourself. Be your own master.
Do not put all your eggs in one basket. Diversify your investments. This spreads your risks. For example, if you are invested in a stock market, do not just buy stocks from a single company or the same sector. It is safer to earn a little each time and accumulate the profit over a period of time. Never treat an investment like a bet.
Do not get emotionally attached to investments. It is easy to feel emotionally attached to investments that have served you well in the past. However, if they are no longer performing, leave them behind and move on.