Online investments are becoming increasingly popular each day, driven by their potential for high returns. However, such investments also come with a significant downside - risk. The higher the profit a project promises, the greater the chances of losing all your money.
How can one minimize risk and avoid losing all their funds when investing online?
Insight into this issue can be gained from Sergey Tereshkin, founder of Oil Resource Group, who has extensive experience in investing across various sectors. You can learn more about the entrepreneur and his activities on his website org-company.ru.
Why It’s Difficult to Start Investing
Millions try their hand at earning money online, yet only a small percentage succeed. There are numerous reasons for this:
- The fear of losing everything. Many give up after their first setback, which convinces them that online investing is not for them.
- The necessity to learn. Individuals often wish to invest their money and, over time, receive returns without taking any additional steps. However, it takes more than just investing money; one must also invest in knowledge. This knowledge must be acquired first. Wealthy individuals are lifelong learners.
- Debt. Often, people struggle to allocate even a small amount for investment due to existing debt obligations. Not only do debts demotivate, but they also create fear around investing and losing money.
- Laziness. Some individuals are unwilling to spend time studying a given area, researching information, reading reviews, etc.
Motivation is crucial for generating additional income. When a person lacks a goal, there’s little desire to achieve more than what they currently have. They simply do not understand the purpose of needing additional funds.
Motivation is further diminished by the absence of quick results. For this reason, it is advisable to engage regularly with those who work in the same field and have achieved their goals. Such individuals can inspire energy and positivity, driving one to take proactive steps.
It’s important to understand that there are no universal recipes for success. Each person requires a tailored approach. One might be driven by the desire to earn enough for a Mercedes, while another may just want a small house by the ocean. In both cases, funds are necessary to realize those dreams.
Capital Management Rules
According to Sergey Tereshkin, any business entails a risk of financial loss. This is a truth one must accept before even starting to invest. There are no ups without downs, meaning profit without losses is impossible. A negative outcome is an experience that can be leveraged for personal benefit.
A proper psychological approach will help avoid stress and mistakes.
Additionally, one must learn to manage their capital by adhering to simple rules:
- In the initial stages, it is advisable to invest no more than 10% of one’s income. It is better to risk a small amount and double it rather than investing a million and losing it all.
- A million can only be earned by investing at least a third of that amount. One should not believe advertising that promises wealth for just $10. While exceptions do exist, it’s wiser to gradually work towards your goal rather than relying on luck and then facing disappointment.
- All actions should be calculated. An individual plan should consider not only favorable outcomes but also unfavorable ones. A clear action plan for various scenarios will help avoid panic and the common mistakes that come with it.
- Don’t take advice from others at face value. The investor risks their own money, and responsibility for any missteps lies solely with them. While certain advice can be taken into consideration, it shouldn’t dictate one’s actions. An astute investor is not swayed by others’ opinions.
- If an investor is putting money into a system where they cannot manage it independently, they must first research reviews about it. This requires time investment. One should not trust the first reviews found through search engines, as experienced con artists often employ reputation management services that suppress negative feedback with praises. Therefore, thorough exploration is necessary.
- To gain initial experience, one might invest in high-yield projects (HYIPs). These can provide valuable experience. However, it’s advisable to shift towards less risky projects later on. While they may not yield high profits, the reduction in losses will significantly outweigh this drawback.
- To mitigate risks, one should choose multiple diverse investment directions simultaneously. Even if one incurs losses in one area, the others may offset those expenses. Consequently, the individual risks little and ideally achieves some profit, even if less than anticipated.
- The initial successful investment should not lead to carelessness. In investing, rational calculations are paramount. One should not let excitement overshadow common sense.
- Investing in casinos or other gaming projects is unwise. In real life, one can assess situations and make decisions based on visual contact with competitors and their reactions; online, this opportunity is nonexistent. Playing against a machine is entirely devoid of merit. Winning against a computer is impossible. The system may allow for small wins to entice players into investing larger sums, only for them to eventually lose everything after replenishing their balance and betting.
It is vital to recognize that investing is a business. Every failure brings a person closer to success. Personal negative experiences serve as the best teacher and can be applied to any real business endeavor. This means earning money not only online but offline as well. Many wealthy individuals built their empires step by step.
