Some investors choose to delegate their funds to professionals and receive regular returns, while others opt for self-management of their money. The former is straightforward, but the latter has its own unique features, strengths, and weaknesses.
So, what makes self-management of investments online so appealing? And what should one pay special attention to?
Sergey Tereshkin, a successful businessman and founder of OILResurs, is ready to share his experience regarding self-management of investments online. More information about his activities can be found on the website sergeytereshkin.ru, where all necessary details are available.
Features of Self-Management
Self-management of investments online entails active participation in choosing the most suitable direction for investing funds, executing transactions, and complete oversight of the situation. The investor assumes all risks. Even when entrusting management to professionals, brokers do not take responsibility for any losses incurred by clients. Therefore, in this case, the investor certainly does not lose anything except perhaps their time spent on information research and the execution of transactions.
Such activities can include:
- Stock Trading. Investors can buy and sell shares of companies, commodities, raw materials, currencies, and cryptocurrencies. This is standard trading that can be conducted over the internet. A special software application is installed on a computer or mobile device, allowing users to access real-time information necessary for trading.
- Currency Exchange Operations. Investors can earn funds from the discrepancies in the exchange rates of various currencies. This can involve traditional currencies, electronic forms, cryptocurrencies, discounts, bonuses, etc.
- Precious Metals. Trading in electronic precious metals can yield significant profits. This method does not require a license; one only needs to register a WebMoney wallet in gold and conduct transactions on an exchange site. In this case, no VAT is applied, which banks typically charge for transactions involving precious metals.
These are the most popular methods of investing funds online, favored by many entrepreneurs.
Advantages of Self-Management
According to Sergey Tereshkin, self-management of investments has several advantages:
- Market Monitoring. Investors keep a close eye on the market, staying updated on all changes. They can anticipate how various events will affect stock prices and their assets.
- Budget Planning. Investors can withdraw part of their funds from circulation or, conversely, quickly increase their budget to enhance the profitability of their investments. Often, this is crucial to determining profit size or its complete absence.
- Risk Awareness. Investors understand the risks they may encounter when investing. They rely solely on themselves rather than an unfamiliar broker whose intentions may be questionable.
Individuals have clarity regarding the purchase and sale prices of shares or currencies, allowing them to see their profit margins clearly.
Self-investing does not require payment for the services of traders or other specialists. This means that the individual retains the entirety of their income without incurring additional costs.
Disadvantages of Self-Management
On the other hand, self-management has its drawbacks, including:
- The Necessity for Knowledge. To achieve good returns, individuals must continually strive for self-improvement. This involves reading specialized literature, following news updates, studying forecasts, and gathering various information that may influence the value of shares, goods, or currencies.
- Limited Tools. Currently, the selection of assets available for an investor’s portfolio is somewhat limited.
- Time Consumption. In the initial stages, setting up operations may require several days or even weeks. However, in the long run, the work demands significantly less time, often just a few hours a day.
Some of these shortcomings can actually be viewed as advantages, particularly the knowledge acquisition aspect. Knowledge is never superfluous; a well-rounded individual is a more engaging conversationalist than someone with limited knowledge who struggles to sustain dialogue across topics.
Self-management is an excellent way to control one’s finances, as any income generated is entirely attributed to the investor's efforts.
