2021 is predicted to be the year of the bull, which in financial market terminology means that it will be fantastic and relatively unique. There is optimism in the market, money is available and investors are willing and, most importantly, optimistic. This is also why a lot of people are for the first time really thinking about transferring funds from bank deposits to the world of securities and cryptocurrencies. Even in Slovenia, where this is not common or is not anchored in the culture of "saving" and refinement.
In so far as you are reading this record, you strongly consider that your savings from now on, you are gentrifying in a modern way. You are slow tired of bank deposits and practical zero interest rates and would like to jump on the "train" and become an "investor". Judging by trends across the pond, every other household in America does this, and out-of-pocket trading in cryptocurrencies and other assets such as securities, funds, funds and "indexes" is quite common. Also due to the extremely easy modern way of trading, it has emerged in recent years most millionaires. Of course, cryptocurrencies also contributed to this, but it is primarily responsible to the greatest extent simplifying trading through modern platforms, which enable trading out of pocket, practically at any time. Recently, even the largest companies have been investing in cryptocurrencies, transferring part of their liquidity to cryptocurrencies with the aim of short-term "enrichment". So everyone invests!
But it's still at the start of investing must be exceptional pragmatic and know the basic rules that are the basis for your operation and must be adhered to! So we present to you the 5 basic rules of every beginner investor. Rules that ensure that you will be able to enrich your property and that investing will not be gambling, but the enrichment of your wealth.
Not sure which trading app to choose? Are you looking for one that would have as few fees as possible and where, in addition to cryptocurrencies, you could also buy a share of your favorite brands such as Tesla or Apple? eToro is an extremely simple trading platform used by an extremely large number of users in Europe and Slovenia and is among the leading trading platforms. It allows you to buy a nice range of cryptocurrencies, as well as practically all securities. Use and trial are completely free.
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Portfolio diversification – don't bet on one horse
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Reduction investment risks it's not just about understanding how investments work, it's about making sure that of all eggs you don't put it in one basket. Even if you are a fan of a particular company, investing in only one industry and one player is extremely risky. If you want to reduce the likelihood of large losses, allocate your money according to an expedient pre-prepared investment plan. For example, allocate ⅓ to technology "BlueChip" companies that have been providing investors with extraordinary returns for the past decade. Here you can decide to invest passively, which means that you are not actively involved in these investments - they are your investments in companies in which you believe in the long term and trust in their vision. These are often also companies that often have the possibility of creating a "monopoly" or extremely uncompetitive environment on the market for certain services and thus a unique market position. It is like this, for example a Google company, which has absolute dominance among search engines. Or the Tesla company, which sets the standard among electric cars, also through an extensive infrastructure network of fast charging stations. Investing in, for example, should be more active cryptocurrencies, where you look for the right moments to buy and sell and thus make extraordinary returns. But it is necessary to invest a lot of energy, attention and time in the latter. The result can be quick and profitable. A good third of the assets must always be held in "liquid" assets, or assets for quick manipulation. This means that you can grab the opportunity if it presents itself at the right moment. And then you also sell at the right moment. Of course, at the beginning of investing, we must have set goals, which are possibly related to your goals in life. If you are saving for an apartment, you should definitely set aside certain profits for this basic life commodity at the moment when funds are available.
Only risk what you can absolutely lose
A case of the main and most important rule, which says that you can only invest from savings that are not absolutely necessary for survival - that is, funds that you can lose. Whereas saving means hoarding money that you don't spend. Investing means purchase of assets, which could provide reasonable short- and long-term profitability. So if you have under your pillow tons of money, this money can eventually loses value due to inflation. If you want it to ennoble, then you must to invest. But that doesn't mean anything gambling, but a game of knowledge and information, where, as with any similar thing in life, there is a certain risk. A general rule of thumb is to invest in riskier assets like stocks when you're young and have time to recover from potential losses. Over the years, as you get older, invest part of the invested money in safer investments with a lower possible rate of return. There is less chance of losing your property here. So, for example, in old age, definitely invest in real estate and other safer investments. Or, transform your investments.
Investments for beginners - the basics of money enrichment and modern investing
Invest only in those things that are close to you and that you understand
If you take over calculated risks, you must actually understand potential reward and probability of loss. This means you need to know how the investment will make you money and whether the asset has a history of promised returns and how and when it might happen loss. So you need to know the industry you are investing in and be informed. Jumping into trending cryptocurrencies can mean huge profits, but also the potential for huge losses. As a beginner investor, invest absolutely in companies with real real-world value. Companies you know and whose products you use yourself. The same the rule applies also for cryptocurrencies. In the beginning, always and always invest only in the most recognizable and the biggest. Investments in these are relatively safe in 2021. Investing in cryptocurrencies you've never heard of is pure lottery.
Always take the time to clear up and analyze your potential investment. Only then invest at the right moment.
Invest as early as possible and as much as possible - everyone can be a millionaire
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Money makes money. If you are considering becoming an investor, be aware of this fact. The sooner you start investing in assets that deliver a reasonable return and the more you invest in those assets, the harder your money will work for you and the multiplier factors will kick in. Small regular investments will turn into a large financial base, which will buy you financial freedom and make money work for you.
Example: How to get your first million
Don't invest money you'll need right away - it's money you'll forget!
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Although investments are essential for your future, however do not deposit every spare euro in them. You need something liquid assets or available cash, mainly due to different life situations. This is important. Some investments require you to tie up money for months or years to earn a return, and early withdrawals can trigger contractual penalties. For other assets, such as stocks, you want the money you've invested not to be under pressure from your personal liquidity. So that you withdraw it when it doesn't make sense and there is, for example, growth. This rule is extremely related to the first rule "Only risk what you can absolutely lose!". So invest in only what you don't need right now!
You need knowledge and education to become an investor
Anyone can easily learn how to invest and so on the latter becomes business as usual with normal business risks. As with any business, it is the biggest risk is lack of knowledge. And it is precisely because of gaps in knowledge that "fresh" investors often suffer they juggle and they play a kind of Russian roulette. Investing is by no means a game of chance, but you should look at it as one knowledge game, combinatorics of information and mathematics. As long as he joins these things the talent factor, and the returns can be extraordinary.
You can acquire knowledge online, from various sources, which we will also regularly present on these pages.
5+ rules on how to start investing we wrote as a basic guide for all those who are thinking and gathering information on how to start investing. We designed these rules as a basic framework around which interesting and related content will be created in the future.
Easy eToro trading platform!
Don't know where to start? Where to buy for the first time Bitcoin or a stake in Tesla? The platform, which among the multitude of tested ones has proven to be the simplest for every beginner, but at the same time good enough for an experienced trader, is the trading platform eToro. The latter enables commission-free trading (even with cryptocurrencies) and at the same time offers beginners a virtual account with 100,000 dollars, on which you can test the platform itself without any risk and simulate trading. On the platform, you can also follow the most successful traders and their purchasing decisions, thus practically "automatically" improving your money. Or you are getting ideas for your investment. eToro it's completely free, and you use it on your mobile phone as an app and in a regular web browser on your desktop.
