Business

10 golden rules for investing in the stock market

First of all, define your objectives, terms and risk of the investment

Before making any investment, it is necessary to establish the objective with which it is made (earn 10% per year), the term in which you want to achieve that objective ( approximately three years) and the risk that you are willing to take (if you have reached the maximum level of losses that you can take, close the position, accept your mistake and wait for another opportunity). All this will depend on the personal characteristics of each investor and will be based on their wealth, age, risk aversion or profit expectations.

 What part of my capital should I risk?

Invest that part of your assets that you will not need in the short term or that will not compromise your personal or family assets. Keep in mind that the noho stock market means uncertainty and that therefore there will always be a risk that things will not turn out as you had originally planned.

Invest short or long?

The term for which the investment is to be made must be chosen by each investor individually. However, you must not forget that speculation is suitable only for those investors who have extensive knowledge of the market, great experience and are dedicated exclusively to it, constantly monitoring the securities they have in their portfolio. The normal investor must have a longer time horizon, which is not an obstacle to obtaining significant profits, since it has been shown that in the long term, investing in the stock market is the option that can provide the greatest profits.

Do not trust the one who promises you gold and Moorish

You must always keep in mind that investing in the stock market carries a certain risk, so no one can assure you of a high profit. Therefore, be wary of anyone who promises you high profits in a very short time and thinks that if it were that easy, he would invest his own assets to obtain the profits he promises.

 

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