- Jan. 25
- Richard Parker
The Investment Rulebook You Need for Successful Returns
A lot of people have different opinions on investing and how to make investments. Everyone knows that investing your money is a good idea. It helps you grow your wealth – both in the short and long term. However, there are so many people that want to get started investing, but end up withdrawing their funds after a few months with very little returns.
Why does this happen? Because you haven’t read the rulebook on investing! There are certain unwritten rules you need to follow to see successful returns. Lucky for you, you’re getting three of these rules for free, right now.
Rule #1: Do Your Research
The first rule is to always do your research before investing in anything. If you want to invest in stocks and shares, learn about the market. Learn what it means to actually own a share in a company, what can influence share prices, and so on. If you invest in crypto, make sure you have a decent understanding of blockchain technology and what all of that means. Never invest in something if you don’t know what you’re doing. Too many people will just put money in stocks and shares without really understanding why they’re doing it, what it means, etc. Become knowledgeable, and it will help you gain more from your investments.
Rule #2: Work With Others
Even if you have done a lot of research, the fact remains there will always be people out there that are more knowledgeable than you. They work in investing full-time, so they could help you get better returns. As the founder of Fundamental Global – a massive asset-management firm – once said: you will likely not succeed if you do it all yourself. Getting some extra help can mean you make more assured and beneficial investments. This might mean working with a broker, or it could mean making joint investments with other people. The benefits of working with others are endless, while the drawbacks are non-existent.
Rule #3: Diversify
The third unwritten rule of investing is to diversify your assets. The best and most successful investors will have invested in many different things beyond one asset. Again, let’s say you invest in some shares. That’s great, but you should also have money in other shares, assets, and markets. The reason for diversifying is that you don’t have all of your eggs in one basket. All your money is in shares for one company – what happens if that company goes bust? You basically lose all the money you’ve invested. By contrast, what if some of your money was in that company, but more was in crypto or other places. If that company goes bust, your overall investment fund isn’t hit that badly. It’s a way of protecting your assets while providing more opportunities to generate big returns.
You can never guarantee investment success, but these rules will move you one step closer to getting impressive returns without the stress. Whether you’re a beginner or someone that already has investments, make sure you follow these three rules at all times.