How to invest properly and correctly so as not to lose
In this super modern era, doubling money is needed for future survival, one of which is an investment. Many people are afraid that investing will lead to a loss of money, investment requires a large amount of capital. Actually, there are several investment instruments with minimal capital. The next fear is that some people think that investing is complicated and requires special knowledge. Whereas investing will be easy if we study or monitor our investments regularly. Investment is a choice that we can use wisely. Therefore, it is important for us to always study, seek and dig up information first before starting to invest in any form.
1.) Choose Platform the Right
2.) Cultivate Mindset the Right
Never give up, be optimistic, and not be afraid to take risks. Develop a mindset before starting. Mindset is one of the many things that affect a person’s success apart from hard work, skills, experience and so on. Because in essence the mindset affects daily habits and actions. A person’s success is influenced by a mindset that has 20% Skills and 80% is a percentage. Mindset has a significant impact on achieving success Some people think investing is a way to get rich quickly. This different mindset will make someone who does the same thing but has different results. Therefore, you need to know some mindsets that can change behavior and actions for the better in order to be successful.
3.) Don’t Ignore Inflation
This way of investing should be avoided. If you ignore inflation in choosing the type of long-term investment, it could be that the money invested will reduce purchasing power. Let’s take an example Based on a report from Bank Indonesia, in the 8th month of 2013, Indonesia experienced inflation of 8.79%, and in the 7th month of 2013, it was 8.61%. This means, that if you invest your money in a State-Owned Depository Bank that provides an interest of 5.46% for 1 year, or even in a non-foreign exchange private bank (which is known for its high-interest rate) of 7.21% for 1 year, you have an inflation risk i.e. the cash value will increase. reduced by inflation.
For most people, investing in stocks or mutual funds is one way to offset inflation. You need to pay attention that at any time the stock price can go up and down. This is because stocks are the riskiest investment. However, stock investing provides the greatest and most consistent profit potential.
4.) Share Owned Capital
One of the things that you must pay attention to so that a beginner investment method can be realized is to first divide the capital you have into several assets or what is commonly called diversification. A common example is a diversification in gold, stocks, property, and debentures. Why is this step necessary? The goal is to prevent losses if one of your assets declines because there are other assets that experience profits. so the burden you feel if you experience a loss will be slightly reduced.
5.) Choose the Right Investment
How to invest this one must adjust to your goals and financial capabilities. There are various types of investments that can be found in the stock market, namely Stocks, Bonds, Deposits, and many more. Each type has its own advantages and benefits and of course with a different range of risks. The order of types with the highest risk and return is first stocks, second mutual funds, third bonds, and lastly deposits. To invest in stocks, strengthen your mind and learn more about the ins and outs of stock investing comprehensively to know the risks. One of the right ways you can find out how to invest properly is by attending a workshop on investment or consulting with experienced experts.
6.) Start With Small Investments First
To grow self-confidence, it is important for beginners to start with small capital first to invest.. Choose investments that are guaranteed and have performed well over the last five to ten years. You can consult further with a platform you trust. For reference, search for knowledge on the internet or read more books on tips for playing stock for beginners or attend seminars.
7.) Don’t Overdo It
Most people’s biggest fear is losing money, right?. Don’t worry you will get used to the market conditions over time. Stay calm in the face of existing conditions and as much as possible don’t go into debt. Too much investment will affect your mental and psychological, especially for beginners. Don’t be easily fooled by things or recommendations on how to invest that you don’t necessarily think are right.
8.) Don’t Monitor Too Often
You can apply these tips if you want to invest that is safe and makes you calm. Why? Because you monitor the progress of your investment too often, it will actually make you worry and become afraid in making decisions. Basically, the main purpose of investing is to build wealth in the long term. So if you keep seeing what happens to your investment performance every day it’s less relevant. Therefore, monitor your portfolio at least once a month.
Talking about mutual funds, this investment method is a bit similar to stocks. The difference is, you don’t have to bother looking for information, analyzing company performance and others about the stock you want to buy, unlike mutual funds you only need to entrust the management of your stock investment to a trusted securities institution. It’s as simple as saving in a bank, but what you save is not money but your investment in a company that is considered to have profitable prospects. So the first thing to remember when investing in mutual funds is that you have to be careful in choosing an investment management company to manage your investments.
The trick is to look at the portfolio and reputation of the securities when they are handling mutual fund projects. Even so, you cannot rely completely on securities companies. You also still have to have the knowledge and learn about the mutual fund products that are offered so as not to lose money and the right way to invest is not neglected.
The existence of a choice of profitable investment types in today’s era also requires you to be able to choose the best priority to determine it. Set priorities with all the recommendations and information on how to invest that you have got. You also have to think about a detailed and clear future plan, along with the benefits and risks that must be faced. Therefore, learning to prioritize from now on is also very necessary.
The investing tips above will make it easier for you to start investing. It must be remembered that success in investing requires a process and time that must be passed by adding knowledge and experience, including always paying attention to the right way to invest. Successful investing takes time, dedication and sacrifice (money).
following are Types of Investments Based on Purpose
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Types of Investments Based on Purposes
1.) Short-Term Investment
The term of this investment lasts from less than one year to three years. For example, a 21-year-old young man intends to get married in three years. So he needs fresh funds to organize a wedding that is not cheap.
Considering this need, the youth is advised to invest in low-risk instruments in the sense that they have stable value fluctuations, and high liquidity so that they are easily converted into cash, and can generate steady income. Some of the instruments that are recommended for him are deposits, money market mutual funds, or short-term government bonds.
2.) Medium-Term Investments
When someone has a financial goal of between 3 to 10 years, then this can be called a medium-term investment.
For example, in the next five years, Mr. Ben must enroll his son at a well-known university in Jakarta. So Mr. Ben needs a large amount of funds to pay the initial fee and semester I.
Considering the need for funds of more than five years, Mr. Budi can choose an instrument with a slightly higher risk than deposits, money market mutual funds, or government bonds, in the hope of getting a return. higher yield.
The instruments in question are fixed income mutual funds (bonds), private bonds, and mixed mutual funds.
3.) Long-Term Investment
When the investment objective is more than 10 years, then this investment is included in the category of long-term investment.
The investment objectives can be in the form of children’s education costs, costs of organizing children’s weddings, purchasing assets for grandchildren, and pension funds.
The longer the investment period, the more flexible one is in choosing the instrument. They can choose instruments with low, moderate, and high risk, or instruments that cannot be converted quickly.
Several instruments that can be chosen for long-term investment include precious metals, equity mutual funds, stocks, to property.