7 Tips for Safe Investment for Beginners
There are various ways to find additional income apart from regular salary. If you do not have much time for side jobs, better start thinking about looking for an investment.
Investments can be made in a variety of instruments, ranging from bonds, stocks, gold, and others. Look for investments that roughly yield yields higher than the annual rate of inflation.
1. Invest in the Right Time
The first key in successful investing is knowing in advance that like life, the economy also goes with its own cycle. Much like a season that runs almost stock every year, so is the case in investing.
If you enter at the right moment in the cycle, then the money will be generated more. One way of looking at this cycle is still in its early stages or has its peak, or even gone downhill will be discussed in the last point.
2. Determine Which Cycle Matches You
The second key in investing is knowing the ongoing cycle. For example, the financial cycles in the United States that had been successful in the early 80s until the late 90s are over, now they are entering into commodity cycles, such as steel, crude oil, palm and so on, for more information : Capital Investment Coordinating Board
3. Observe Each Cycle, Choose the Best
The third key to successful investing is when looking at the cycles of each investment instrument, you can choose which cycle is ready to climb. For example, if in the US is currently entering the commodity cycle, steel could be the most sexy. Now the steel has started to fall and ready to be replaced gold. If you look closely at this cycle, then it is time you go to buy gold immediately.
4. Find the Investment Instrument you are Mastering
The fourth key in successful investing is choosing the investment instrument you master, the better you like. There are several options if you are going to start investing with less than Rp 10 million.
– Mutual Fund, which is a container and fund management / capital pattern for a group of investors to invest in investment instruments available in the Market by buying mutual fund units. These funds are then managed by the Investment Manager (MI) into the investment portfolio, whether in the form of stocks, bonds, money markets or securities / other securities.
– Buy shares in the capital market. By plunging directly into the capital market you can have a stake in the companies you want, just appoint a professional broker then you can simply start. The fee for brokers is not too high and you can easily diversify to reduce risk.
– Precious metal. By buying starting metal, for example gold, you do not need to be bothered to take care of it. Just stay silent then the price will rise. But, in the midst of a crisis like this now the price fluctuates quickly. If you are smart, you can buy at cheap and sell at high.
5. Investment Must Be Detained for Long Term
The fifth key in successful investing is to be held for a long period of time. This is done to dismiss the volatility and risk of loss. The biggest mistake investors often make is to be too unprepared to protect their portfolios, so they often panic when the market falls and drops all of their investments. In fact, investors should be sure that the weakening trend is only part of the cycle that will back up again, unless indeed the investment instrument cycle is approaching the peak.
6. Evaluate every investment trend
The sixth key to successful investing is to be an opposite investor, but not against the market. For example, when everyone is buying, you must be a seller. Vice versa, when everyone sells, you must be a buyer. As Warren Buffett says, “you must be greedy when others are frightened, and fear when others are greedy.”
7. Know the Top of the Investment Cycle Before Falling
An investment will peak before finally entering a downward trend. Indeed the peak can not be seen by the naked eye, but there are some traits that you can notice:
– The returns you get suddenly speed up, higher than you normally get in a year. Soon this investment cycle will reach its peak.
– If everything you know, friends, relatives and neighbors talks about the benefits of investments gained on the same instrument as you. The characteristics approach the peak.
– If many people start to quit working and rely on life just by trading stocks on the stock through online trading, or becoming a property broker. Examples like these show the two investment instruments that have reached its peak cycle, it is time you look for new investment instruments with a young cycle.