You are probably looking for investment-linked insurance policy Malaysia while browsing insurance plans. Maybe you have settled or in the middle of settling your life and health insurance fees, but that final plan caught your eye. After a read or two, you are wondering if you want to start investing in general.
Slow down, buddy. Diving into investing is easy, whether you have that insurance or not, but the results can be haphazardous. The market is never predictable one hundred percent. If you blindly jump in, the chances of gaining marginal to no returns at all can be high.
Keep in mind that this is neither professional advice nor is this anything to do with, say, crypto at all. The only difference about them is that they are extremely volatile, and if you want to burn your investments with an atomic blast, invest in crypto with eyes sewn shut.
Have lots of money
It might sound obvious. After all, who would ever invest with a mere one buck? Ten bucks? A hundred bucks? Maybe if you are “testing the waters.” In other words, observing how a trade works and you don’t mind gaining more or losing that money because it is just a “test.”
Even when you can trade online with little to zero commission fees, and even when there is no issue in trading as little as one hundred, it is still ideal to have a large sum of money to begin with. Your trading money is part of your total savings that you can afford to spare, gain and lose. Emphasizing on “and” because there are no risk free investments and you can expect to lose even a small sum.
Otherwise, if you still don’t want to spend any of your savings, then do so. Don’t waste them investing as high returns do not magically appear in thin air.
Be a nerd
Researching is a key to a successful investment. Do lots of reading, watch educational videos, et cetera. Learn the fundamentals of investing before you even dive in. Never stick to social media like Facebook, YouTube, Instagram, and so on.
That is the last thing you want to do in investing, and is especially more prevalent when it comes to crypto, something that again, carries a very high risk due to its volatility. Never believe in hypes at all. Always be skeptical.
You might be wondering about those financial gurus, and who you can trust. The best route for this is to watch any one of them, and then browse the Internet to fact check their tips, claims and so on. If a lot of what they say is contradictory, walk away.
Reading news is also part of research, as it allows you to keep up with the latest happenings and trends. These are the influencers of the market, and whether they are good or bad news, it can turn the tide.
It might sound like work to you, but lots of research can not only grant you valuable knowledge, but you will also be able to get ahead of the masses and spot mistakes from so-called financial advice.
Never think short term
Thinking short term is akin to borderline gambling. People who are successful in short term investments are experienced traders that know what they are doing and are ahead of the masses thanks to research and experience.
Methods like day trading may work, but you will have a fat chance of not being able to fish out much of the cookies in the cookie jar. At best, you will receive crumbs.
Instead, think investing as putting spare money aside and waiting for it to grow like a plant. You can also think of this as a way to save your money somewhere else, as long as the price doesn’t plummet too much. If, say, your online bank is under maintenance, you could access your trading platform in an emergency and sell for a few needed sums.
Remember that investing is not only putting your money to work and build wealth overtime, but you are also helping in increasing the value of an organization, company, and so on. If they become highly valued in the future, people will likely be bullish, increasing the prices and thus your invested sums.
This is where you have to decide whether you should hold or sell. If you have noticed that the prices are close to or already reached an all time high, definitely sell. Wait longer and the price will fall, because the bear has arrived and the bulls left the party.