Many are afraid to start investing for fear of losing money, but they are constantly considering investment options. For some, it has become a kind of hobby – to plan, look at stock quotes and do nothing, I am sure the manager of the Avira group of companies, Alexei Zagumenov.
For those who are ready to move from dreams to business, specially for Investlab, an expert from Russia’s largest b2b player in the entertainment industry offers five ways to overcome fear.
Method 1: Learn
Whatever the investment, it always involves risk. The degree of risk can be assessed by special knowledge about a particular market niche; moreover, sometimes materials from news sites tell about the situation and the possibility of investments more eloquently than experts.
Self-education in this regard helps reduce fear through information. The investor begins to understand the processes, prepares for possible consequences, looks for new ideas, ”says Alexey Zagumenov. Often, through self-education, a small investor begins to understand so much in business that he turns into a businessman.
Method 2: Wait
Any investment that brings real profit takes time. The Golden Mountains a day after investing money promise not just high-risk organizations, but, most often, fraudulent.
Begin your entry into the world of investment with online P2P lending platforms. In most of them, the entry threshold starts at 5,000 rubles. Having made a contribution with minimal risk, in a month you can get about 80 rubles of net profit plus official tax deductions. This is a bit, but will allow you to learn how to wait and make a profit from expectations. The larger the amount, the longer the investor should be able to wait.
Method 3: split investment
Losing the entire amount of investment at once is the worst nightmare of an investor. However, we are talking only about beginners. Professionals do not invest in one business more than 20% of the total amount of available funds.
A professional investor is always an operational analyst. Somewhere, he earns 1% of the contribution, but quickly, somewhere – 200%, but in five years. The more contributions, the less risk. At the same time, a certain percentage of each deposit must be returned to the common boiler – funds for further investment.
Method 4: Manage Your Business
Interestingly, but, as practice shows, most investors sooner or later start managing a business. Most often, those in which previously invested. This helps both self-education, and the ability to analyze arrays of thematic information, and, of course, the thirst for profit. The best business is the one you worry about..
In 2018, the organization of a hostel, the sale of food products in the format “At Home” and the launch of a family entertainment complex were recognized as the most profitable areas of work. In the latter case, the payback period is the lowest – says Alexey Zagumenov.
– I often see how an investor invests in one entertainment center, monitors financial flows, then gradually learns the basics of management and, finally, opens his own institution – even larger and more attractive. The fear of investing here is gradually replaced by entrepreneurial excitement. Business is like a drug.
Method 5: Say goodbye to money
If you hold money in your hands – this is your money, you worry about them, are afraid to lose them. Fear is like smoke in a fire. And from fear, and from the smoke of people dying more than from fire or bankruptcy.
There is a psychological trick: when investing money, mentally say goodbye to them until the time of refund. If you conducted a comprehensive analysis, chose the best option, trust the business in which you invested – the money will return, and you will greet them again. If you still lose them, then the stress for the body will not be less than an example – you have already waved a hand to them.
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It’s common to feel apprehensive about investing, but there are steps you can take to overcome your fear. Start by educating yourself about different investment options and strategies. Consider seeking advice from a financial advisor who can guide you based on your goals and risk tolerance. Start small and gradually increase your investments as you gain confidence. Diversify your portfolio to reduce risks. Keep in mind that investing is a long-term game, and market fluctuations are normal. Lastly, remind yourself that not investing also comes with its own risks (such as inflation). What specific areas or aspects of investing are you most afraid of?
Many people feel hesitant about investing due to fear. How can one overcome this fear and gain the confidence to start investing? Are there any strategies or steps that can help alleviate these concerns and make the investment journey less intimidating? It would be great to hear some advice or insights from experienced investors who have successfully overcome their initial fears.
Fear of investing is a common concern, but it shouldn’t hold you back from potential growth. Have you considered educating yourself about different investment options or seeking advice from a financial professional? Assessing your risk tolerance, setting clear goals, and starting with small investments can also help reduce fear. Remember, knowledge empowers, so what steps can you take to educate yourself and gain confidence in the investment world?
One way to overcome the fear of investing is to educate yourself about different investment options. This can include reading books, attending seminars, or taking online courses. Seeking advice from a financial professional can also provide guidance and reassurance.
Assessing your risk tolerance is crucial in determining the type of investments that are suitable for you. Setting clear goals can help you stay focused and motivated. Starting with small investments allows you to dip your toes into the investment world without risking too much.
Remember, knowledge is power. Take the necessary steps to educate yourself about investing and gain confidence in making informed decisions. By taking proactive steps, you can overcome your fear of investing and potentially achieve long-term growth and financial security.
One step you can take to educate yourself and gain confidence in the investment world is to start by researching different types of investment options such as stocks, bonds, mutual funds, and real estate. You can also consider reading books or taking online courses on investing. Additionally, seeking advice from a financial professional can provide you with personalized guidance and strategies tailored to your individual financial goals and risk tolerance. Setting clear investment goals and creating a solid financial plan can also help alleviate fears and uncertainties. Remember, investing is a long-term commitment, and taking small, calculated risks can lead to potential growth and financial well-being in the future.