Investments are solutions to more income and future saving for more security but no investment proposal assures the complete profit. For quick money, investments are mostly seen as the lucrative deal but they have their share of risks too and so with every investment does not mean bonus or profit. The market deals in shares, mutual funds, and commodities the prices of which go up and down as the world economy changes. Since all the investments are subject to Market risks, keep a track of your profit or losses.
Loss of any investment is hard to digest, but since individuals cannot do much about the market slips, here are a few ways how you can reduce the loss:
Closely watch your investments believing that you will get a certain percentage of return is fooling yourself. A first-time investor may not able to take the minus in the return percentage, but the truth is by far different. Traders and investors check the daily or monthly record, the graph and see where the particular share is going. While you may take a step and book a percentage of loss, so that you don’t lose all your investment it is advisable to plan how much profit or loss you can take in your stride. Booking a minimum percentage of loss, or a nominal profit is the best possible way to be wise with your hard earned money. This can help in better returns and overall growth in your income in a financial year.
Investments must not be Stagnant Money only grows when you keep it in the rotation. At the time of investment, the individual must plan what he or she is targeting. Money invested once must be kept for a term defined by the investor. At times, there are a few stocks which are promising better returns while others might just show no movement at all. The investor must see the right time to sell investments or book loss so that they are well-placed. Also, breaking out from a deal or discarding a stock must be done systematically so that you update your investment plan bi-annually.
Put Greed Aside, Decide Smartly Even though many plans to book a ten to twenty percent of profit or loss on their investment, it’s hard to book it. Novice investors may say no to risky assets like stocks, shares and volatile commodity, experienced shareholders, find it difficult to shy away from the real gamble. Since the odds are always high, the market may turn anyway leaving the nominee in trouble or great bonuses. To keep that insecurity at bay, it’s best to act smartly, calculate the return and break the deal.
If a rising stock has reached your target and you still see it going up, do not hesitate to take your share and move. It will prove better for your future as an investor and will always strengthen your finances. Do not let your investment finish off, as you wait for a huge return. Stay grounded and enjoy your Share.
Midi is an experienced writer and has been writing on various topics like business, Finance, the best personal lender in Australia, business loans and more. She is also a regular contributor in http://www.fastloantoday.com.au/.