The most important thing we’re going to look at today is 6 things you should never forget about investing, investing means postponing current consumption to making more profit in the future. In fact, the investor hopes to get it. Further profit in the future ignores current values. There are three ways to invest: direct, indirect, and semi-direct, each of which can be used in its own right.
In this method, a direct relationship is established between the investor and the investor.
This practice is often done between close friends and acquaintances.
In the indirect method, a financial institution acts as an intermediary between the investor and the investor. In other words, the depositor/investor provides his funds to these institutions, and the investor also provides the necessary financial resources through these institutions. In this method, the risk associated with investing or lending is borne by the intermediaries that act as financial intermediaries.
The semi-direct method between an investor and investable is specialized institutions such as Investment Banks. This type of specialized institution, after carefully studying the number of investable needs, how to use the funds, determining the most appropriate type of documents and securities (ordinary shares, preferred shares, bonds, bonds convertible into shares or other instruments), the desired tool Underwriting and selling to investors (including institutions such as insurance and pension funds and legal entities).
These institutions play the role of “expert" and “agent" and are not themselves long-term investors in securities. Shares or bonds purchased or pledged by these institutions are sold after a short time. Investment banks are among the interim financial intermediaries that are responsible for transferring funds from investors to investors in a semi-direct way.
1- Never invest in what you don’t know
Most people who fail in investing know that the most important reason for this is ignorance or lack of knowledge about the subject of their investment, and they regret that I wish I had read more.
This does not mean that you should not invest in new technologies or what you do not specialize in, but that you should study what you are investing in or use knowledgeable consultants in that field.
2- Take risks
Acting blindly does not mean being risk-averse, but risk-taking means that while acting wisely, you have the courage to make decisive decisions because too much fear delays your success and may even make it. Make it impossible.
3- Be secretive
A professional investor does not shout his professional secrets and does not talk about the secret of his business in any circle, because in the information age, what makes you different from others is your information, so do not auction your winning card for free.
4- Be social
This principle is in no way in conflict with secrecy, but complements exactly the previous principle.
A good investor is in touch with other colleagues, investors, and even competitors, because being in professional spaces will increase your knowledge and double your self-confidence.
5- Money is not the key to investing
Many people think that in order to be a successful investor, we must be rich.
While this is not true at all, a successful investor makes the most profit from the least amount of capital, thus continuously increasing his capital.
Many of the most prominent contemporary capitalists have not been wealthy people, but people who have made the most of their position.
6- Don’t be greedy
Many investors are greedy for this loss and have even lost all their assets. So look at the temptations of great profit with skepticism and try to make wise decisions.
Published and authored by FalconProfit.com