Few successful entrepreneurs do not invest a portion of their income with the aim of further increasing their funds.
Today, there are numerous ways to grow capital. The Internet has opened up wide opportunities for investment for businesspeople. In other words, individuals now have the chance to earn money without leaving their homes, whether sitting in a comfortable leather chair or on the beach by the ocean. This way, one can become a successful trader or investor.
Among the diverse methods, there are those that can genuinely yield substantial profits. At the same time, there are also approaches that can disappoint and deter individuals from investing for an extended period.
Where should one invest their money to minimize risk while achieving a decent income?
Avoiding pitfalls can be assisted by the recommendations of Sergey Tereshkin, founder of "Oil Resource Group." The entrepreneur is an experienced investor and personally invests in various financial instruments. This has provided him with considerable experience. More information about the entrepreneur’s activities can be found on his website: www.sergeytereshkin.ru.
Key Factors
There are both active and passive methods of investing. Individuals can either take an active role in augmenting their capital or entrust their money to experienced specialists who will manage the funds at their discretion.
According to Sergey Tereshkin, investors should adhere to several rules:
- The safest option is a bank deposit. This is a passive type of investment, but it is also the least profitable. Often, the interest does not even cover inflationary fluctuations. To achieve maximum profit, preference should be given to long-term deposits, as they offer significantly higher interest than investments for three months or less.
- When investing in business projects, it is essential to understand that one can both earn high returns and potentially lose all or a significant portion of their money. This method allows the investor to influence the company's operations, primarily in the case of direct investments or purchasing company shares. Therefore, these can either be passive or active investments, depending on the investor's choice.
- Among the most promising are investments in Internet startups, which may include app or game development, investments in binary options, etc. These are high-risk activities that can yield enormous profits. Often, investments pay off multiple times, bringing the investor millions of dollars. However, it is crucial to recognize that only 10% of projects succeed. It’s worth noting that risks are present everywhere; even the most reliable bank can go bankrupt, resulting in a loss of funds.
- Currency markets are regarded as among the riskiest investments, yet they are one of the most popular avenues. A prime example is trading on Forex. The demand for this instrument stems from the possibility of rapid and substantial capital growth. However, it is essential to know that this market does not benefit everyone. Consequently, it is easier to lose money than to profit. Therefore, it is crucial to develop a sound strategy, and this method can hardly be labeled passive. Investors must continuously monitor quotes and market changes.
To mitigate risk and protect invested capital, it is essential to calculate each step meticulously. One should not succumb to impulse. The primary principle of a successful investor is cold calculation and foresight. This requires market analysis, reading research and expert opinions, and conducting personal analytics.
Useful Tips
When investing in any sector, it is advisable to follow the guidance of experienced investors:
- Funds should be invested in various instruments to diversify risks. Even if one instrument proves unprofitable, the others can cover the financial loss and generate income. Naturally, this is assuming that all funds haven’t been allocated to financial pyramids, HYIPs, and other dubious organizations.
- During market fluctuations, one should not panic and hastily liquidate assets. Following a decline, growth typically returns, unless the companies are on the verge of bankruptcy. Selling assets inevitably results in losses. It is much more effective to wait for the situation to stabilize.
- Upon earning the first substantial income, it is essential to refrain from succumbing to impulse. One should avoid reinvesting all funds into one profitable venture, as this poses a risk of losing everything.
- To achieve truly good results, ongoing self-education is crucial. This requires substantial mental and physical exertion; mere effort will not suffice. In this scenario, one can attain solid, but not exceptional results.
- For optimal results, quality instruments are necessary. It is crucial to construct a well-formulated portfolio that includes top-tier bonds and shares of major companies. Deviating from this strategy is discouraged, especially for beginners. The portfolio should not consist solely of stocks.
- Experts recommend starting in the stock market with a minimal amount. Investing tens or hundreds of thousands without experience and intuition is inadvisable. Over time, one can gradually increase their investment amount.
- Investing in a company simply because it is deemed promising is unwise. Such a firm does not guarantee income. Preference should be given to shares of robust companies that have consistently demonstrated high profitability over time.
- Seasoned investors allocate a specific amount monthly to various instruments. In a declining market, they tend to acquire slightly more securities, while in a rising market, they purchase much less.
Investing is a complex process that demands dedication. Passive placement of funds is unlikely to ensure notable income for a businessperson. It is essential to endeavor to comprehend the instruments. Through trial and error, significant progress can be achieved.
If one merely sits back and waits for others to generate profits, it is unlikely that anything fruitful will come from the situation.
