Why Do We Need to Understand Basic Investment Principles?

[Suba]

Many people become confused when they start investing, with many questions running through their heads: how much money should they invest? Where should they start? What investment instruments should they choose? etc. Some of these questions seem logical.

Here are some general basic investment principles that every investor needs to understand:
1. Determine Investment Goals, Targets, and Priorities
2. Use idle or cold money.
3. Know your risk profile
4. Manage Risk
5. Diversify

If you choose to invest in crypto
6. Always take profits when prices are high and buy when prices are low.
7. Avoid FUD and FOMO.

 

[Augusta]

Understanding the basics of Investments can help you make more informed decisions.review your portfolio and stay up to date on market trends and economic developments.

 

[Springtime]

Understanding basic investment principles enable you to make wise investment decisions.

 

[Starmix]

Knowing the basic investment principles help an investor especially the beginner to minimize losses. It also helps a newbie investor to be cautious.

 

[eLdavis]

Having a clear understanding of the basic principles of investing helps you make the right decisions.