According to Investopedia; Investment is the purchase of goods that are not consumed today but are used in the future to create wealth. It is also a monetary asset purchased with the idea that the asset will provide income in the future or later be sold at higher price for profit.
Just as everyone would suggest to cash holders, investment is a way for future major breakthrough or you easily hear things like, investment is a way to double up cash and there is a need to have more than one source of income.
What most fail to tell you is the “what ifs” that comes with investment, especially the trending online trading.
For a fact, investment is a need not just to double the available cash but the need to have more than one source of income.
“Rule number one: don’t lose money. Rule number two, don’t forget rule number one .”Warren Buffett
To avoid failures while investing your little money, you need to consider some factors that can trigger wrong investment and loss of money.
I had some funny but hurting experience when I ventured into some kind of online investment and trade, after some failures, I realized I shouldn’t have taken the risk after all but the quest for cool cash and the need to keep the circular flow of cash alive, I made some bad investment decisions and some of these bad decisions and questions I should have asked myself I will discuss with you now:
What is the nature of investment: sometimes when investment opportunities are given to us, the first question that comes to our mind is “how much is the return for little investment”? while for some, they consider how long it will take to get my money back.
What you need to understand is that fact that, some of these online investments are Ponzi schemes and only appeal to your greed to gain higher return. When you fail to have adequate knowledge of what to invest, you will be we exposed to making wrong decision. So you need to understand the nature of investment before you can put your money to avoid heartbreak.
Your interest: most people invest because of the nature if returns or what we call profit. What we don’t know is if we are making these investments because it is in line with what actually capture or interest or contains our imagination for wealth creation. If you are interested in trade, it is better to learn how to trade rather than rushing into Ponzi and losing your money.
Wealth creation is not tied to quick cash because riches is a dividend of wealth while wealth is the ability to solve a problem. So if you can solve a problem, you can create wealth.
know your strength, channel your energy to what catch your interest and invest both time and energy in it.
Time: one major thing that result to wrong decisions when it comes to trade and investment is time. Time I would say is an acronym for Time Is Money and Energy; people are always busy but they have nothing to show for being busy, no profit from “busy” and definitely cannot define what is keeping them busy.
What spends your time should be what keep you from wasting time, and wasting your life. Investment is not limited to money but time spent is not far from destiny fulfilled.
In summary, one of the major reason while investment fail is because most of the investors have no clear knowledge of how the business works. Most investors are only interested in how much they can make. However, it is important to know how the market curve flows so you know when to invest, how much to invest and when you can pull out of the investment.
“the four most dangerous words: this time is different”Sir John Templeton
This is why the rich get richer and the poor wallow in self pity and find someone or a situation to blame.
Join the conversation and let us know what you think.