Making strategic investments is a great way to build revenue. However, for many, it is a daunting task and difficult to undertake. Randall Castillo Ortega, the founder of SME investment service RACO Investment and an expert in financial matters, provides insight into what it takes to be a successful investor.
The more you know about what you invest in, the better off you’ll do. Do your homework before you start investing. Having a little knowledge beforehand can make the difference between making or losing money. You wouldn’t jump to the bottom of a pool without first learning to float in the water. Jumping into an investment you know nothing about is no different.
Also, whichever investment you choose, start small and expect to make mistakes. You will. And if you’re aware of it, you have nothing to fear. But eat them with small amounts of money, first learn the basics. If you buy stocks, don’t bet everything on one. Buy some shares.
People get caught up in looking for the best investment, the one that will pay the most profit. That can paralyze a person because they don’t know what the best investment is. By starting small, you get real-life experience with various investments and decide which one is best for you.
Until you have some money, you will be in the game. Investments are a game because sometimes you win and sometimes you lose. An investor is a person, company, or organization with money invested in something. If your money is not invested, then you are not an investor.
A little money means a little risk; a lot of money could mean a lot of risk. “Whenever you embark on a new investment,” explains Castillo, “you should take into account your lack of knowledge and experience and prepare. You are also more interested in knowing when your money is at stake.”
Become an expert in cars, if you are going to invest in them. Do your research well before making any decisions. If you want to learn about a new investment, buy it but with measure.
Investing is an endurance race, not a speed race. Therefore, investors have to be prepared for a marathon, not a sprint. No matter how talented you are, there are things in life that take time, and investment is one of them.
When investing in the stock market, holding a stock as long as possible will yield more returns. States Castillo, “The investment period is infinite; therefore, investing in the short term does not work. The stock market is a money machine that transfers profits from impatient people to patient people.
In the long term, the historical return gives, on average, 10% return per year. This number, after a long steady time of investing, withstands any financial wind, be it recessions, wars or health crises. This is because long-term experience helps to know how each action works and how to respond to crises.
Remember the resistance of the marathon. You have to get used to the muscle, and generate habits. Therefore, it is best to have an investment plan, that brings better returns. Instead of thinking about what the most strategic actions are, it is convenient to maintain patience. If the market is down 10% or 30%, it doesn’t matter.
Proof of investment must be accompanied by a plan. You can be a successful investor if you do it every week or every fortnight with a fixed amount. Little by little, you will be able to buy at different prices no matter how the bag is.
To be able to invest successfully, you have to go against the grain: invest when almost no one wants to do it. Anyone can invest; the difficult thing is to control human emotions. Keep the pace constant, do not despair, have the long-term goal always in your head. If we control our desperation, our hunger for immediate wealth, we will not be successful investors.