You are considering starting investing , but how do you proceed? You obviously don’t want to lose your money just like that, so you are looking for a way to prepare yourself optimally. Shipfinex helps you on your way with a step-by-step plan: Investing for beginners.
Investing and Investing for Beginners: What is it?
You invest money to gain financial advantage. There are many forms of investing. For example, you can invest in gold and invest in real estate or what if we told you that you can become a ship owner of a ship through investing in Maritime Assets. Investing in ships is also a great opportunity for investors and you can leverage this opportunity through shipfinex. Marinecoin is the native exchange token of ShipFinex.
The token will enable Maritime Assets in Shipping that generate income, global payments, remittances & operational expenditure by shipping companies worldwide.
The goal is that your investment will increase in value, but at the same time you will have to accept the risk that it can also be loss-making. Fortunately, we can try to avoid the latter by making a good plan.
Step 1: You Start With a Plan
Successful investing is difficult. Some people become discouraged after a bad investment experience and turn their backs on the stock market. In fact, many people are so afraid of the risk that they decide not to invest at all. That is unfortunate and above all unnecessary. You can prevent a failure on the market by making a good plan. This is a very important step, but unfortunately it is often forgotten.
B: Determine the Term
The time frame you have is one of the most important factors that determines your success. By choosing a goal, you probably also have insight into the period that you can invest. The longer you invest, the greater the chance of a positive result. Time ensures that you can make up for any losses. Do you need the money for a major expense in a few years? The risk is then probably too great.
If your portfolio falls sharply in value in that short period of time, there is little chance that you will end your investment adventure on a positive note. You only invest or invest in the market with the part of your assets that you can afford to lose for the long term and allow it to grow. As a rule of thumb, you can keep it for at least 5 years.
C: Determine Your Investment
How much money do you want to invest? The investment amount is a determining factor as soon as you start looking for a party to invest. For example, many parties use a certain amount as a minimum. In addition, the costs often depend on how much money you invest.
When you start investing on the stock market, it can be exciting to invest a large amount in one go. Fortunately this is not necessary. You can also opt for periodic investing or investing . You spread your entry moment over a longer period, for example by making a monthly investment.
D: Determine Your Risk
Investing in the real world assets market involves risks. But how much risk you take is up to you. Often a number of risk profiles are used, such as defensive, neutral and offensive. The longer the term, the more risk you can take. An asset manager can advise you on this.
With self-investing, you choose the products yourself and therefore determine your own risk. Are you going to do it yourself and do you see opportunities for a very high return? Then the risk is usually also high. An important rule of thumb is that risk and return go hand in hand.
Read More: Important Investment Lessons for Beginners
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