To grow wealth, entrepreneurs from various countries around the world choose investing. They allocate funds to promising projects and sectors. This enables them to generate income monthly or even daily.
With the right selection of direction, profits can reach dozens or even hundreds of percent. Moreover, this income can be earned without significant effort and without distracting from core activities, in other words – passively.
So, how can one do it correctly?
Gaining insight from an experienced investor and founder of "Oil Resource Group" – Sergey Tereshkin, can be helpful. More information about the entrepreneur can be found on his personal website www.sergeytereshkin.ru.
Types of Investment
There are several types of investment:
- Speculative. In this case, an individual earns from the difference between the purchase and sale price of an asset. These can involve long-term or short-term investments.
- Financial. Here, funds are invested in financial instruments such as securities, deposits, or bonds.
- Venture. In these investments, funds are allocated to promising directions, including new technologies, startups, innovations, etc.
- Real. Money is invested in tangible assets, with real estate being a prime example.
Funds can be invested for just a few days or even hours, as well as for an extended period exceeding five years.
Investment Rules
When investing, it is crucial to adhere to specific rules:
- Duration of investment. One must understand that money is not invested for just one day. Typically, the longer the investment period, the greater the income can be. It's advisable to initially aim for long-term prospects.
- Study the direction. Before investing funds, it is essential to gather maximum information about the chosen sector. In this regard, Sergey Tereshkin suggests interacting with individuals who have already invested in this sector, and reviewing official statistics and analytical data. This can assist in decision-making.
- Possess your own opinion and intuition. One should not blindly trust advisers. Often, personal opinions and observations help to avoid mistakes. If, after thorough research, you discover that the sector is promising, and your intuition signals forthcoming profits, it is better to take the risk than to regret a missed opportunity later.
- The ability to stop. Investment is often compared to gambling. After achieving quick profits, it can be challenging for a person to cease their activities. They may become overly absorbed and consequently lose money or a significant portion of it. It is essential to know when to stop and to avoid letting adrenaline govern one's actions. This also applies to unpromising projects that fail to deliver desired returns, necessitating a switch to another direction.
- Emotions aside. All decisions should be made with a clear mind. One should not rush or act on emotions. Experienced individuals prefer to "sleep on it." It is wise to give oneself a few days to ponder and weigh the options. There is a chance that, after some time, the project will not appear as promising as initially thought.
- The best choice is to invest in leaders. When investing in stocks of various enterprises, preference should be given to companies that have already built a solid reputation in the market and demonstrate good returns. Investing in a startup or a loss-making company is not advisable.
When investing money, it is unwise to immediately withdraw and spend the profits. Experienced entrepreneurs reinvest a significant portion of their income. This approach gradually increases the size of their portfolio and, accordingly, their profits.
Recommendations
To maximize security while investing, it is advisable to follow the guidance of seasoned investors:
- One-third of all free funds should be invested in directions that are guaranteed to yield returns. These can include placing funds in deposits or individual investment funds, acquiring real estate, or precious metals, among others. This helps diversify risks and preserve at least a portion of the capital.
- A small portion of funds may be allocated to high-yield directions. These are often riskier investments that can either yield excellent returns or result in complete losses of the invested funds.
- One should focus on generating passive income. This can serve as a great support when having a permanent job. It can be achieved by investing in securities such as stocks or bonds that allow for substantial earnings without exerting effort or distracting from core work.
- Do not invest in areas you know nothing about. At the initial stage, it is essential to gather maximum information. Only after that should you decide whether to invest or abstain.
Currently, there is a wide range of investment tools available in the market. The key is to choose the right direction correctly.
Funds can be invested in domestic enterprises or real estate, as well as in assets abroad. The latter option is often considerably more favorable and less risky. Foreign markets exhibit relative stability. Foreign investors have long been allocating their funds to various projects. They do not rely on pensions or state aid but rather strive to secure a comfortable living for themselves and their children independently. Investing is an excellent way to achieve that.
Every type of investment requires a responsible approach. One should not rely on chance or mere intuition. It is vital to study the investment field, read recommendations, and consider feedback from actual investors.
