Wednesday, June 20, 2012

How to be a good investor and make profitable trading

There are many ways be a good investor, however there are some assumptions that may be conductive lines to achieve successfully invest, namely to achieve best results. This was the motto for the creation of the 10 commandments of investment, which could also be dubbed the 10 commandments of successful investor. Based on this meeting to consider relevant provisions in order to obtain better results in financial ventures that people do, that is the explanation of each of the guidelines. Following these commands is sure to be a good investor, whatever action the market.

1 - Do not lose money. Make good investments.
Make good investments and not losing money is essential, Warren Buffett, said in his commandments for investing: Rule 1: Get Paid and 2nd rule is do not forget the 1st rule. Is not always easy to make good investments because it can lose money on certain investments, it is a good idea to think about investments and the type of investment.

2 - Always have some liquidity.
Must possess a reserve of liquidity so as not to be necessary to dispose of (sell) assets in less favorable times. It is also the liquidity that allows you to make new investments. Liquidity is a term that refers to the speed of turning assets into capital (money). It is easier to make a deposit in money than a property, be aware that it is essential for the moments of need for cash.

3 - Invest in what you know and like.
You can invest in a huge number of assets and products, only in the financial markets there are a plethora of assets where you can invest or withdraw capital gains. The selection of these assets or financial products should be careful because they will require your attention and for this reason should apply where your knowledge or taste is. Add business with pleasure is always a good bet.

4 - Plot goals and objectives.
Setting goals is the best way to initiate any action and investment is no different. Define what you want to allow to develop strategies to achieve this.

5 - Admitting the error.
One of the things that cost is to admit our own mistakes, admit them however can be very positive because it allows for example to sell it to lose it is preferable to lose 10% than lose 20%. Being aware of this fact allows splicing. Hitting is always very, very difficult.

6 - Invest only the money you can.
You should never invest money that is needed for current expenses as the result of the investment is negative then the failure could lead to financial liability when assumidas.Mesmo take riskier positions or leveraged finance refers to where it should be taken care study operations.

7 - Control your emotions.
Markets are moved by emotions, one element will always study the psychology of masas, as these are factors that influence the purchase and sale of assets. Being cold in investments allows you to have a more lucid, so greater potential returns.

8 - Diversification: Balance is always important.
Diversification is a complex issue, as discussed in the article: diversify or concentrate investments. Having a diversified strategy helps to not lose money, which can be important on many occasions.

9 - You should study and analyze the assets where you invests.
Investing the assets without analyzing where to invest can be compared to playing the EuroMillions, you can earn yourself, but the surest is lost. Investing is not a game, you need to know where to invest, analyzing the risk and cost associated with investment.

10 - Be positive and patient.
Being positive is essential not just investments but all aspects of life, patience is a virtue too, because sometimes you need to fail a few times before getting the results you want. The results are always result of the action.

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