8 Tips for Successful Investing in Kenya
Trading involves taking quick positions, while investors usually hold positions for a longer period which could be months or even years. But before you commit your cash into an investment, it is always worth to have an all-round understanding. This article highlights the essential things that an investor needs to know before they commence.
Goals
Although it might sound simple, there are many people who invest a lot of money, but they have no clear plan. It is honest to say that such is essentially a gamble. Although you can invest profitably for the long-term, clear definition of goals allows correct alignment of your expectations. Therefore, you don’t shiver the moment you fail to pocket a six figure in the first month. For example, being clear on whether you are in the investment for the next one, five or ten years can be a game changer on how you decide to invest.
Education
Investment education and knowing the craft is an essential tip. It makes sense to do your homework before committing your hard earned cash. You can equip yourself by reading articles or watching educative videos and you will be better than most investing wannabes who dashes their capital pointlessly.
Diversification
Think of how you can spread your cash across different investments. It is a great risk reduction strategy and increases the possible returns over the long term. Investments preforms different from each other and balancing between those that perform poorly and those that are doing great are imperative.
Practical expectations
Of course every investor is looking for a lucrative investment and majority will come across it at some point. However, things may turn out different but you still need a survival strategy.
Don't limit yourself
It is recommendable to be conservative when choosing an investment. But don’t limit yourself exclusively to what you know. Search opportunities regardless of how uncomfortable they could be but remain conservative in choosing.
Risk management
Successful investing calls for risk management. As above-mentioned, you cannot put all your capital in a single investment. It would mean that you believe that it has a success rate of 100% which is not usually the case. You are on the right path if you consider diversification.
Invest the little that you have
It does no matter the amount you invest, but it worth investing regularly. It may appear simple but very few people understand the point of putting into an investment even the little amount per month.
Therefore, it is recommendable that you save and invest on regular basis. You will be glad for the rewards you reap in the long run.
Do review
Constant review of one’s investments is a crucial step to reap more form what you are already doing. But that does not mean looking at your P and L of your ten year investment after every 24 hours. All you need is to check the investments that have worked over time and those that have not.
After that, concentrate your efforts on doing more of what has worked. However, review whatever was not successful and determine where you went wrong. Getting into an investment scheme earlier puts you in a better position. It gives you the power of compound interest which is the single biggest reason behind the success of most investors who are on record for raking more than six figures.
Basically, it means that your money makes you money and you put back all the gains into an investment. That way, it compounds and builds with time. Therefore, do not hesitate, join an investment plan and start building your wealth today.
Fred Kabiru
Fred Kabiru is a content creator and SEO specialist. He is passionate and experienced about Business, Digital Marketing, News and Technology. He is a believer of content worth reading for a brand worth following.
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