Investing Principles for Beginner Investors

in hive-175254 •  4 years ago 

Investing has been one of the major steps to take to be rich (so we were told), and why they believe they have to invest, they still get it wrong as they believe that the people who buy and sell short over 5 times daily (I mean traders) are the true investors because they make their money on a daily basis but in reality, this is not true. The people who do deals on a regular basis, time in and time out on the stock market are not investors, but traders they are market makers and they are responsible for the day to day changes on the market. Over the years, investors have proven that continuous investing over the years can guarantee a financially free life, so what should you do when you want to invest as an investor.

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Investing is not a game of emotion, it is a game of logical thinking towards the goal of making long time returns. A lot of people who are believed to be investors aren’t, as so many people do what is called Arbitrage trading which means buying low and selling high. Never be emotional when investing, no matter how low the market goes, it will surely go up over time, so do not be emotional with your investment.

Never invest in companies you do not understand because others are investing in them. Traders are opened to any type of companies including companies with penny stocks but when it comes to investing, you have to understand the company you are investing in. You need to carry out your due diligence over the company you want to invest in.

Be able to utilize economic downtime for your investment. Although, it is not easy to time the market, but economic downtimes are periods that investors should take advantage of. At this point, the market is completely down and people will be willing to sell for less due to panic, this is when you should buy into companies you want to buy at a reduced price compared to when the economy was stable.

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A simple and very good tutorial I think the key to everything is planning, research clearing up any doubts you may have before taking the next movement.

It is very important to plan, clear off silly thought as we move on the next step to our achievement.

At this point, the market is completely down and people will be willing to sell for less due to panic, this is when you should buy into companies you want to buy at a reduced price compared to when the economy was stable

That is just the perfect illustration time to invest in you have said

Very appropriate, a lot of people are willing to sell off now that the economy is making things difficult and it will be the best time to take advantage of the situation.

Hello friend, you're right, the first thing we should do before investing in any business is to inform ourselves, traders are usually people who know how to do their job well and earn a lot of money, so I think it's a good option to learn.

Learning should be an everyday habit that every man will posses and trading is a good way to get that done.