The Questions you Must Ask Yourself Before Investing

The Questions you Must Ask Yourself Before Investing

Find out the top questions you need to ask yourself before investing. Keep reading to find out all the details. Read on!

Find out the top questions you need to ask yourself before investing. Keep reading to find out all the details. Read on!

In the long term, and on average, the price of the shares that make up the main stock indices in the United States increases, as does that of crypto assets. It is - as many people like to say - a fact of reality.

A very simple way to corroborate this is to observe the market capitalization: with the passage of time, it did nothing but go up and its performance was much higher than the inflation that the main world power registered year after year.

What experience do I have? How did investing go in the past? Years of experience in the investment world are like the flight hours of airplane pilots: if the accumulated results are good, we will feel a greater confidence in our own knowledge, even in times of turbulence. If, on the other hand, your experience is little or non, before investing in equities, spend at least 3 hours a week for two months to understand the operation of the market where you are going to enter and the assets you plan to buy.

What experience do I have? How did investing go in the past?

That "beginner's luck" is more a saying than a fact and the luck of your savings cannot depend on chance. An intelligent investor knows that the maxim is another: "sometimes you win and sometimes you learn." A bad performance can become a good experience if you carry out a correct analysis of the reasons that led you to fail. You can capitalize on the mistakes and win with present and future investments.

How, on average, did those who made the investments I'm planning in the past fare? In most investment platforms and social networks there are plenty of tips to push you to carry out short-term trading and thus earn what they like to call easy and fast money, but the truth is that the statistics do not play in favor of this strategy - More than 95% of short-term traders lose money and most must abandon the battle sooner rather than later. By contrast, long-term investing has proven much more effective for those who cultivate patience and coldly resist short-term temptations.

How, on average, did those who made the investments I'm planning in the past fare?

How much can I lose if I'm wrong? In the rush to get on the last car of the train that is about to leave, investors do not take the time to project the possible negative consequences of their adventure. For those who tend to be dominated by anxiety there is the saying "never invest in equities more than what you are willing to lose."

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