Ido Fishman Highlights the Dos and Don’ts of Investing

Are you interested in investing, but don’t know where to start? You are certainly not alone, as there are a number of people out there who have some savings they want to invest, but are unsure of how to go about it. They have thought about a number of questions, from how much money they should invest to the type of stocks they should buy, and are unsure of how to proceed. Even though it does seem a bit complicated, it does not mean that investment has to be complicated. After all, investing expert Ido Fishman says that investing your money is essential for you to be able to achieve your saving goals.

If you are a beginner, you can certainly take advantage of the dos and don’ts of investing that Ido Fishman has highlighted below:

Dos

• Educate yourself

According to Ido Fishman, you are not going to make money from stocks if you don’t understand the company. Study their management, core values and financial statements, along with any other information that gives you an idea of their investment potential. You can also consult a financial advisor to guide you through this process.

• Diversify your portfolio

It is better for you to have multiple investments instead of just one. But, Ido Fishman says that a diversified portfolio is not just about having a higher number of investments, but also about having different types of investments. This way, if one or two of the stocks you have invested in is performing poorly, your overall portfolio will still remain profitable. This can only happen when you have a greatly diversified stock portfolio.

• Make long-term investments

It is a well-known fact that most people have made their fortunes through investments over the long-term. Even though it can be very tempting to want to see returns in the short-run, you should remember that they will not be close to what you expect. In contrast, Ido Fishman says that long-term investment offers you a more stress-free experience because it gives your investments times to have a greater impact. Moreover, when you decide to do this for the long-term, you will not have to pay a ton of fees to your brokerage. Plus, compound interest also helps you in earning more over the life of the investment you make.

Don’ts

• Let your emotions take control

Since it is your hard-earned money at stake, it is understood that emotions will be involved. Therefore, Ido Fishman says that you have to keep a level head and not let your emotions cloud your judgment. You should only make an investment when you have an exit strategy in mind and know it is the right thing to do.

• Make blind investments

Once you delve into the investing space, Ido Fishman says that you are going to get plenty of unsolicited advice from people. But, you need to take everything with a grain of salt and not just blindly follow anyone. Even if they have achieved success, you should still not listen to anyone no matter how appealing their recommendations and tips may sound. Your investment decisions should only be based on research and not because of someone else’s gut feelings or recommendations.

• Take unnecessary risks

No matter how tempted you might be, Ido Fishman does not believe it is smart to take unnecessary risks when making investment decisions. You should always have a balanced risk and reward ratio. Experts will tell you that it is never smart to invest all your money in a stock that may be hot, just because there is a possibility of making only a slightly higher return. Rather than doing so, it is better for you to safeguard your money because this is just as important. You do not want to take unnecessary risks and watch all your hard-earned money go down the drain. Don’t let greed get to you.