Have you ever been to a complete new location and find yourself stepping on unfamiliar zone? You are not sure of the direction to take, how the weather is like and more importantly the potential risk you are facing in this new place. This inevitably exposes you to unnecessary worry and fear which resulted in unwise decision. Researching the unfamiliar zone in detail will ease your fear and prepare you for the worst.
Similarly, this applies to investment. If you don’t know what kind of investment you are investing into, then it’s better not to invest as you may not be aware of the risks you are bearing which may potentially land you in debt trap. For instance, the risk of investing into Unit Trust is different from investing into individual stock; risk of investing into land banking is different from investing into wine. It is important to know what you invested in and whether the risks associated with the instrument met your risk profile.
Before you invest into anything, learn more about that particular investment and ensure that you are comfortable with what you are getting into. Your investment experience is important as it affects your investment mindset which essentially determine if you will be successful in investment.
Happy investing....
No comments:
Post a Comment