Key Points to Keep In Mind Before Starting Your Investments

These days, every time you open a social media site, you will encounter various investment experts encouraging you to invest through their online courses or apps. you simply get carried away with it because you find it easy or your friends are doing so or your relative has suggested you to do it.
Investment is easy but also risky, if you do it with half of your knowledge. People are making quick investment decisions without considering their long-term financial goals.
After opening a Demat account, investors have an illusion that they can start trading or investing, but they forget some basic points before investing.
Before making a decision, review the following important areas:

1. Prepare your financial plan
   before making an investment decision, take your time to analyse your financial situation, understand your financial goal. A person makes investment when he thinks that his income is not enough to fulfil his goals. Make your financial plan either by yourself or with help of professional. Financial planning allows you to easily manage your funds.

2. Calculate your risk
   After making a financial plan, calculate your risk. Securities investment is affected by several independent factors, such as inflation risk, credit risk, and liquidity risk, all of which may affect your investment decisions. The investors must calculate their risk and the degree of loss they can bear before making any investment.

3. Consider diversified portfolio
   Once you have a plan and assessed the risks, you can continue to invest. Investors should focus on a diversified investment portfolio to minimize risks. The portfolio should consider your short-term and long-term investment goals. Before making any investment, investors should analyze the fundamentals of the company.

4. Maintain contingency fund
   Whenever you go shopping or take a walk, no matter how much your bank has or whether you are accompanied by an elderly person, you always carry cash with you. Whether you need it or not, you carry cash for emergencies.
   Similarly, when investing, you should not invest all your savings, but always keep a portion of your savings for emergencies. It can be possible that you expect the return within 6 months to take 9 months, you will have to wait another 3 months, you must have an additional 3 months of funding.

5. Pay off your debts
   There was a time when you were in debt, you were so hungry for money that you would take high-interest loans. Once profitability starts, the first thing to do is to pay off the balance and pay off debts as quickly as possible.

6. Consider rebalancing portfolio from time to time
   Rebalancing returns your investment portfolio to your original asset allocation portfolio. You may have achieved your short-term goal and have a new short-term goal. Investors should continue to track their investment portfolio and make changes when necessary. You can change your investment portfolio by analyzing stock indexes according to your goals. If you have long-term goals, you can invest in large companies, and if your goals are short-term, you can invest in liquid stocks.
   You may be confused as to which company to invest in. With the help of TICKER, you can easily find stocks through the unique grouping feature called BUNDLES exclusively available for Ticker users. You can compare different ratios, industry ratios with their peers. All these functions can be used with a single click.

7. Don’t become fool
   If you spend some money on them, you will attract people to the market who will prompt you to make higher profits in a short period of time. Don't be a fool in search of higher profits. Stay away from liars. Remember one thing, there is nothing in the world that can help you make money by snapping your fingers. You need to wait to win something.
   Just remember the whole world is a lie you need to find the truth.

There is a famous quote by Peter Lynch “There is no shame in loosing money on stock, everybody does it. What is shameful is to hold on to a stock, or worse, to buy more of it when the fundamentals are deteriorating”.