The simple tips to help you preserve capital , investment efficiency

The individual investors often do not have the time and skills to troubleshoot financial turning point ; the stock market ; understand the financial indicators ; the monetary policy of the government as well as the dynamics of the professional investors ….
The individual investors often do not have the time and skills to troubleshoot financial turning point ; the stock market ; understand the financial indicators ; the monetary policy of the government as well as the dynamics of the professional investor .
Wall Street Journal offer simple tips to help you conserve capital and effective investment as follows :
Tough and consistent
One of the first principle of this is that you must be consistent and disciplined . As to the investment portfolio including stocks ; bonds to invest ; shares in the investment fund or bank deposit , you need to maintain the proportion between them . Not because of any short -term fluctuations of the market , the emergence of a new investment ideas or new shares that you appear to have changed the method is established. Also, you need to periodically ” pouring ” money into your portfolio . This may not be easy , especially when the market is at that time not growing , you are not seeing increased investment and not getting instant gratification . But the recurring capital increase will thoroughly digest of market fluctuations .
Typically , the value of a certain type of investment have soared usually a strong impact on the center of the l investors . When looking at the rapid growth of a class of shares or total capital of an investment fund that , people immediately poured money into them in strong agitation – but usually when that period had the strongest growth passed. “People spend money or buy shares or drop the money into an investment fund that somehow they were supposed to do this from a year ago – Odin Tarrans professor , an expert in the field of financial university of California , said . – This somewhat explains that people often extrapolate the results from the past to the future . Moreover, most amateur investors often simplified capital markets than it has . “

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