1.Sign up your personal finances
Before making any type of investment, it is necessary that you order your personal finances, that is, that you learn to manage your money in a disciplined and constant manner. Make a monthly budget taking into account your income (income) and outflows (expenses) of money to determine the amount you are willing to invest. Also, it is important that before making any investment out all debts that you have contracted, remember that once you start investing your investments will become a new use of money, which before you had not contemplated.
- Seek advice
To form an investment portfolio it is necessary that you know the mechanisms with which the stock market works. There are several financial institutions, such as banks and brokerage houses, which have advisors, who will help you to know the risks to which you are exposed if you wish to invest, as well as the estimated time necessary for your investments to yield the fruits you want. . In addition they will advise you to place your money in the best investments. Remember that part of the money you allocate to investments will go to the advisory services you use
- Know your profile as an investor
Depending on the time you want to allocate to the management of your investments and the risk you wish to assume at the time of investing, you must decide if you are a passive investor, with which you would have to dedicate 4 or 5 monthly hours to manage your portfolio, in addition to your risk profile would be low, with what you should invest in funds. If you are an active investor, you would have to spend at least 6 hours a week managing your assets, plus your risk profile would be high, with what you could invest in stocks and currencies.
- Define your investment objectives
After you have ordered your personal finances and have determined your investor profile, you need to know what you want to invest in the Stock Exchange, because if you lack investment objectives, such as buying a house, car or guarantee resources for your retirement, the decisions you must make when making transactions in the market will not be based on what you want to achieve with the money invested, but on the luck you think you have when making your investments and this could take you away from the profits . With an objective in mind, you will avoid making decisions lightly and you will know how to retire when you have to do so in order to set new goals with new investments.
- Do not invest all your assets
Even if you have decided that your risk profile at the time of investing is high, that is, that you are able to tolerate fluctuations in the prices of the shares you have acquired, it is not advisable that you allocate all your assets to the investment in the Stock Exchange. Values. This is because such fluctuations, as well as certain investment schemes, will not allow you to have the money invested in case you have an emergency or if you have scheduled an important expense. The best is to allocate a fixed amount with clear objectives.
Article from: https://steemit.com/blockchain/