5 Lessons Every New Investor Should Learn

I share the lessons that I learned throughout the years

Photo by Michael Longmire on Unsplash

I invest only what I am ready to lose

The biggest enemy to any new investor is emotions. They will play a significant role in decision-making; you’ll rush to open new deals, close the ones in red and lose money in that way.

I consistently invest 10% of my monthly income

The logic behind me investing 10% of my monthly salary is simple — 10% is an achievable target, and it does not impede the quality of my life. Indeed, a couple of hundred extra dollars is nice to spare on food, apparel, or entertainment, but thinking in the long-term perspective, it’s just a waste of money.

I always look long-term

Initially, when I started investing, I was looking at short-term gains. I was happy if, during good days, my investment grew, and I often closed the positions when they generated some small profit.

I only invest in brands that I use myself

I learned this from another professional investor, and it makes perfect sense. You would purchase the stocks of a company that you believe in and are familiar with. In the end, you need to trust the brand to put your money into it.

I look for companies that will continuously grow

Some companies will continue growing (at least in the foreseeable future). These are promising and disruptive companies such as Apple, Tesla, Microsoft, Google, Amazon, etc.

Conclusion

The most important lesson of all is — invest what you can afford to lose. Never bet the money that you need for rent, groceries, healthcare, education, etc. These are the essentials that you cannot cut out.

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