Besides planning to buy comprehensive protection plan for working adults Malaysia, maybe you also plan to put your hard earned money into an investment, yet you remain nervous about it. You fear losing your money in the future rather than earning a higher return. This is typical, especially if you are new to investing.
Every investment contains risks, no matter how small or big. Some like crypto are more volatile than others, and are not recommended for beginners unless they know what they are doing. Knowing how to invest isn’t just about choosing the right types or market to suit your interests and knowledge, it is also about minimizing risks so your invested funds wouldn’t end up being a waste a couple of weeks later.
Knowledge is power. If you are new to investing, it is crucial that you start reading about the fundamentals of investing as well as the markets themselves. You don’t have to sink yourself into very intricate data about them, but just enough for you to understand how investing works.
Books and the Internet are your main sources of knowledge. Investopedia is one of the sites that you can start with as besides providing explanations, they also allow you to get yourself familiar with financial jargon. Knowing basic investing theories like the “castle in the air theory” and the “fundamental theory” will allow you to see what drives people to invest in a particular market in the first place.
Besides, never stick to social media as your main source of knowledge. Perhaps you would be able to find useful information, but a lot of it can be unreliable unless you know where to look. This is the last thing you would do since in social media, hypes are imminent, something you would like to avoid.
Try not to follow emotions
Speaking of avoiding hype, emotions are one of the main factors of investments in the first place. It is something you can both take advantage of and stay away like a plague. Hypes are risky because by the time you follow it and pool your money into that investment, it may already be too late and you would lose some of your funds as the price descends.
The fear of missing out, or FOMO, is also prevalent among bulls and bears in investing. Try not to let it get the better of you and remember that you invest in the first place because you have done enough research and concluded that this investment has a lasting value that can even survive the most bearish period in its history.
Plus, when taking advantage of emotions, you will have to keep up with the news, but not for too long as the market tends to be an ever moving roller coaster. If you see that the price is close to or beyond its all time high, definitely check out. Likewise, when the very low price is about to recover, buy the dip with whatever amount you can spare and just move on with your life while your invested money grows.
Remember this phrase: “Be greedy when others are fearful, and fearful when others are greedy.”