What are the general guidelines to be observed while investment of money
To earn maximum profit from investment made by investors must follow the general guidelines to be observed while investment of money. The opportunity of making big money always attracted investors towards share market. To make money from share market not very task. Investors have needed to be smart enough to show patience and discipline inside share market.
World famous investors Warren Buffett said in his meeting with investors that always become greedy when everyone inside share market are in fear and fear when everyone inside share market become greedy.
Data collected from economic history of share market experience the general guidelines observed while investment of money like investment should be focused for long time, diversification in your investment portfolio, buy and sell at right price, ignored always tips of investment provided by others, stay away from rumours, donot make decisions fastly, take always informed decisions, never start your investment journey taking loans, always invest your hard earned money 50-60 percentage from investment budget in large cap companies then 25-30 percentage money in mid cap companies and at last invest 10 percentage of money in small caps companies.
Every investors doing investment inside share market never wanted to lose their hard earned money. There are the general guidelines to be observed while investment of money to make sucessful money profits on future.
Market working till now not predictable by anyone. Share market expert only make predictions according to trend of share market movement.
What is the most important rule of investment
Share market always show high volatility every year. Investors must observed while investment of money is that investment of money always subject to investment risk or market risk.
The guidelines to be observed while investment of money is that never invest your hard earned money which you can't afford to lose due to investment risk.
Image given below represents the most important rule of investment high volatility in share market and returned profit generated by holding investment for longer duration.
As investors if you ready to understand rule of investment and take high risk of investment then there is chance of gaining higher return of money in longer duration of time.
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| What are the general guidelines to be observed while investment of money? |
What is the rules for investment
10 best rules of investment which can be observed while investment of money like invest for longer duration, never be herd mentality, take informed decisions, never make investment in buisness you don't know, Although there are no best formula discovered to give guaranteed sucessful in investment of money.
First rule for investment of money says that always smart investors made investment of their hard earned money for longer periods.
Main reason behind longer period investment is to minimize risk of losing money due to volatility of market for short periods and in longer period volatility market become in favour of investors investment.
Second rule of investment which can be used as the general guidelines to be observed while investment of money say that avoid the herd mentality.
Most of people started their investment journey after seeing in neighbourhood all are investing in share market.
Herd mentality can be proved to be back fired as negative impact in your return generated by your investment.
Important line said by many smart investors is that always become greedy when everyone inside market in fear of losing money and always be in fear when everyone intrested in share market.
Third rule of investment which can be used as general guidelines observed while investment money say that take always informed decisions.
Investors most of the case go through with company name and purchase stock of that company stock without doing proper research work.
Without any research work doing investment by investors results in bringing various types of investment risks in their investment returns. Proper sample in research work should be done by investors before doing investment of their hard earned money and this is correct way of making money from share market.
Fourth rule of investment which can be used as general guidelines observed while investment money say that never invest in business you don't know.
The general guidelines observed while investment of money in buisness you know which will help to understand company buisness model. This rule of investment explained investors to never make investment in one stock of company which he don't familiar. This rule tells investors to make investment of money in a buisness of a companies.
Fourth rule of investment can be used as the general guidelines observed while investment of money say that don't try time market movement.
Even big bull in field of investment not able to timed market correctly.
Economic history explained investors can become big bull of investment only with view point of investment not be remain same in future.
Fifth golden rule of investment is to follow the discipline investment approach which can be used as general guidelines to be observed while investment of money.
Accounting records studied for share market economic history explained that investors who done there investment systematically for longer time and able to generate higher return from their investment.