I am not a big investor. Yes, I have worked in finance sector before. So I have some knowledge in this area. I have worked in a bank for seven months, but I was not in the company's payroll. It was a temporary job. So I left it after seven months. My job was to find a new client for fixed deposit and savings account. During seven months I came across all types of fixed deposits and savings accounts. But I forgot the name and features of many products. I can say one thing that fixed deposit is a very good banking product. You get a fixed rate of interest after a certain period. The good feature of this product is that the rate of interest is written on the fixed deposit certificate. If I will have huge money in future, I will invest a portion of it in fixed deposit.
I got this knowledge after I worked in banking sector. This is the feature of a successful investor. They first try to gather information about the product in which they want to invest their money. Investors read financial news daily so that they could understand the impact of those news on their investment. They follow every aspect of the financial sector. After that they can become successful investors. I would like to share some tips that successful investors follow:
1) Investment strategy
In order to make an investment, investors follow a strategy that they make using their own experience that they gain from market or product investigation. No matter what others say, they follow their investment strategy to make an investment. They don’t follow what other investors do. They do their own research on a product before making an investment.
The risk of financial loss gets reduced when you follow an investment strategy that you make using your own experience. And then you earn a good profit from your investment.
2) Control your emotions
Emotions play an important role in an investment cycle. It can ruin an investment. Investors tend to deviate from their strategy in fear and greed. Making wrong decisions, they sell their investment or invest in wrong shares. The same mistakes can be seen in share market. They sell their shares in fear when market goes down and purchase it when the value goes up. So it is very necessary to control your emotions. Otherwise you will make a huge loss rather than profit and it will ruin your portfolio. However until you participate in share trading, you gain no experience and until you have experience, you can’t make prediction that when to sell and when to buy.
3) Save money
Successful investors not only earn money, but also they know how to save it for their future and successors. They also curb unnecessary spending and take health and insurance coverage so that their family could fight uncertain financial loss. They also create emergency fund to fight market risk and inflation. They always think for safeguard before making an investment. Common people understand that investors don’t think before spending. But this is not the fact. They always try to avoid unnecessary spending and think for savings. Later they use those savings in buying a new financial product.
4) Think for long-term investment
Most investors think for long-term investment rather than short-term. Yet there are several investors who take interest in both short-term and long-term investment. You can also make profit from short-term investment if you have enough experience. Several people make money from day trading but they are highly experienced trader. They know how to deal with the situation. While inexperienced people lose their money in day trading. My advice is that you should first think for long-term investment and gain knowledge about the market. Then you go for day trading. Fluctuation in share price for short-term period never influences long-term investors because they always project long-term result.