#1 Understand risksUnderstanding your own risk tolerance is the key. How would feel if you lost some or all of the funds invested?
A common mistake for even experienced investors is to believe they are more tolerant of loss than they actually are. Occasionally even when riskier investments start to decline, they often panic and sell.
Taking a considered Risk/Reward approach will insure you invest in line with your capacity for loss. Any investments involve risk – this also includes holding cash thanks to inflation.
#2 DiversifyAs different markets rise and fall, a diversified portfolio of different types of assets can help to stabilize your portfolio over an economic cycle.
Investing exclusively in particular markets, sectors or companies can leave you exposed to unforeseen issues occurring in one particular area.
Afford.Capital invests in 10 key fields, in both online and offline businesses.
#3 Invest don’t speculateThough penny shares, altcoins, and startups with their perceived potential for high returns through “cancer cures” or by offering extremely high yields out of thin air can be very enticing, you need to consider what the long-term future value of the company is.
This is not the right approach to think that taking increased risk guarantees you more returns, you wouldn’t bet on a pony in a horse race. That's why Afford.Capital uses the scoring model with 200+ parameters.
#4 Determine your goalsWithout determining your goals, you can't identify your purpose and there won't be any finish line behind your hard work. Ask yourself "What is important to me?"
Whether you'd like to buy a new car, house, Rolex, or just pay your monthly bills -- determine your final and intermediate goals.
Jotting these goals down and placing them in a visible place will be a good reminder of what you are working toward.
#5 Stick to your planYou knew it wouldn’t be easy. It is very hard to ignore market movements, bear markets, inflation rates, and BTC prices…it’s endless.
A true investor should be looking at long-term trends and macroeconomic factors that originally shaped their plan and always keep these as their focus.
#6 Invest regularlyInvesting little and often is sometimes better than investing larger lump sums.
According to different research, even professionals find it better to invest on a regular basis, rather than to try to catch the best deal of your life at once. It is much harder to go with a one-off lump.
By starting to invest early and regularly you can take advantage of compounding, and volatile times won’t hurt that much.
#7 Don't be afraid to ask for helpWhile investing, there are many important decisions that may seem beyond your expertise. Don't be afraid to ask for help. Defining your goals, understanding your current situation, identifying steps to move forward -- sometimes all of these are impossible without a consultation.
The Afford.Capital team is happy to answer your questions in the blink of an eye. Book your consultation and enter the world of venture investments.