better manage my investments                                                                          traffic news

        Better manage my Investments


A mistake that we have done too frequently relative to investment is the trend that we all have by nature of buying expensive and sold cheap. Knows that successful investment is on the purchase of an asset at a lower price, in order to sell it at some time later at one higher price. However the majority Act doing things to the revez. We tend to be very excited when the market or business are positive. But that may precede an unexpected change and everything can move suddenly. Then goes down, all you get nervous and scared, and we started in directions you erroneous in favour of the current. Therefore, it sounds like something very simple and cliche, but one of the biggest mistakes we commit is buy high and sell low, and do it over and over again.

"Is a story about a financial adviser who forced to customers, who first demanded their services, to fill a sheet that must choose between two options;" the first indicated if he preferred to "buy cheap and sell expensive" and the second option mark allowed opt if on the other hand the new client belonged more between those who preferred to "buy expensive and sell cheap". 
 All new customers wondered if the fill the leaf was a joke and everyone obviously opted for signing the "stupid road" by checking the first option. After a time, inevitably, when the market suffered a sharp drop, some clients called the Advisory so appropriate to sell their positions. Then the Adviser sending a fax using the form given at the time by the customer in order that they update and procediesen to mark the second option (the "sell cheap and buy expensive"). "As a result many investors who had been processed sell orders cancelled realizing that the"stupid form"was not as stupid as at first it seemed". Always the same story. We all know what to do but few "chosen". With headlines in the press of the type "as a reaction to what happened…. investors today have lost, with the global markets fall, a...." most bites the hook and hastily sold. Real investors never lose with widespread falls in the market, rather the contrary; they benefit. They are well aware of the distinction between volatility and final losses.

better manage my investments  


Counteract this impulsive trend we should be first of all take a step back and ask ourselves why we are doing these things. We must take time to develop a plan. There are a large and fearsome financial plan of an inch thick. Simply take the time to take a step back and say: "where I am today, and where you want to go?" And then recognize that its investment portfolio should coincide with the plan.

That way we can avoid mistakes or myths about the investment.

One of these myths have to do with not seeing the big picture, whereas decisions in isolation and not include its effect on any investment portfolio. Consequence: Invest too much in a single class of assets, industry or geographical market because you know much about them and feel comfortable with such decisions.  traffic news


Also use a decision in the short term horizon, ignoring the objective fit of accumulation of wealth in the long term, favour short-term profitability. Consequence: Statistically, the losses are more likely in the short term than over longer periods of time.

better manage my investments  
Strategies of self-control on several levels are a good solution to counteract the tendency to make bad decisions.

The use of this strategy is not limited to investments and often include other behaviors like diet and exercise, purchases of high price and other important decisions related to the lifestyle of each person.

Some strategies and its application in financial decisions:

1 Limit the options. Buy illiquid investments will avoid the temptation to sell when the market is falling.

2 Avoidance. Avoid information about how the portfolio and the market is behaving to follow an investment strategy in the long term.

3 Standards. The use of standards to help make better financial decisions, such as only spend the earnings, never the capital.

4 Terms. The establishment of financial periods in order to save a certain amount of money at the end of the year.

5 Cooling. Wait a few days before taking a big financial decision before executing it.

6 Delegation. Delegate financial decisions to others, such as allowing an investment advisor to manage your portfolio.

7. Other persons. Use other people to help you achieve your financial goals. An example would be the meeting with a financial adviser to make and execute your financial plan.
 

Look for advice is vital hen invest in something is, it is best that you advice good, of an expert, usually pay much attention to what they say news, friends, neighbors, but most likely none of them is an expert in the subject, so if you have a money who wants to invest consult an expert on the subject.

Someone that cares about your personal finances must be aware prices and try to save in each of its shopping and business.better manage my investments  
 
Diary of expenses: keep a diary of expenditure, i.e. control of all, you did well, all the expenses you do every day, do this exercise at least one full month and check which can be small leakage of money in my business.
We could be spending much personally, for example in subscriptions to newspapers or magazines that we do not always read, in cafes, buy cigarettes that harm our health, books that we can get rendered in the library, etc.


Zero in on the multiplication of money but also in the time factor. See yourself taking huge amounts of what you need, when you need it. This may sound a little silly, but it works. Our Foundation is actually found in the fact that we create our reality with our own thoughts and feelings. The more we focus on how many accounts we have, as many more accounts created. The more we focus on how many debts have, so much more we endeudamos long-term.


It is at risk. Ordinary investors say: "Do not run risks". The rich, successful and millionaire investor is at risk.  traffic news

Finally be prepared to sell when you eventually need the money. You want to invest to build financial security for you and your family so it is best to use it when necessary rather than spare and then to become the richest man in the cemetery.better manage my investments