Better investing in 5 steps
Better investing with more profit? This is possible! In this article we will discuss 5 steps that can make you invest better than most people. Read them through carefully, apply them and who knows, you may achieve a huge profit this year with your investments.
Step 1: choose the right broker
Firstly, it is important to select the right broker. In our article on inexpensive investing, we briefly investigated which broker is most advantageous for the novice investor. We are talking here about private investors who want to invest with an amount of several hundred or thousands of pounds.
The Plus500 broker turned out to be the most advantageous. This broker offers easy-to-use software that prevents you from making wrong decisions. In addition, this broker offers all the necessary options to enable you to invest better, including:
- Unlimited practice with a demo
- No commissions on all your investments
- Availability of all popular Dutch stocks
- Investing can be done automatically using orders
Step 2: choose what you are going to invest in
Do not be a “jack of all trades”! Many beginning investors try to be good at everything; however, it is very difficult to trade in gold and bitcoins and 25 stocks and 12 currency pairs. So first choose what you really want to focus on.
I personally started trading Forex or currency pairs because the movements are often calmer than stocks and, because of the high volume, there are few unexpected movements.
Step 3: practice with a demo
Good investors have a certain discipline. It is therefore important to first practice with a demo or a small amount. Once you understand how everything works, you can start investing with a small amount.
It is important not to practice just a bit; Make good use of your time and act like a real scientist. Try to find out which strategy works for you, put it on paper and then strictly commit yourself to it. Follow the steps closely and you will become a better investor.
Step 4: better investor by losing
If you really want to invest better, it is also important to lose now and then. Many people believe that losing is the worst thing you can do. The truth, however, is that sometimes losing is the best thing you can do.
Therefore, open a good bottle of champagne, invite some friends and celebrate your loss! Because you took your loss, you prevented all your money from disappearing and that is definitely worth a party.
Step 5: manage your positions
If you really want to invest better, you have to manage your positions well. It is important that you actively keep track of what happens to your investment. Decide in advance at which point you will take your loss and at which point you take your profit.
It is important that you make more profit than loss. This sounds pretty logical but it is important to make sure that you take a loss sooner than you take a profit. In this way you can endure the more loss-making investments without this being a disaster immediately; after all, your best “horses” get the money!