Hidden Investments Rules- Are You Aware ?

It comes as no surprise that after awhile of staying under employment or in business, you started thinking about stocks, unit trusts, Forex, money markets, properties, commodities trading or mutual funds. Why? Simple. Money is never enough. But how much do you know about investments to guarantee yourself that you can make money out of it? How sure are you that you won’t lose money by investing?

Question of the day:

What should I know about Investments to get myself on the right track of money making?

Rule #1:
Do you know that in stock market, there’s a 10:70:20 Rule?

What is 10:70:20 Rule?

Out of 100 people who invest in the stock market, 10 people make profits , 70 people lose money while 20 people just break even regardless of how long that takes.

Is this figure alarming? Does it now tell you why you should be actively engaged when you seriously want to make money out of your investments?

Rule #2:
Never buy stocks and hold for a lifetime. Since 1997 and 2001, it is proven that buying stocks and holding for a lifetime can even lose your capital.

Rule of Thumb: Hold a maximum of 10 years then sell depending on the circumstances.


Rule #3:
Cash is King. Your stocks will only be paper profit or paper loss unless you cash it.

Rule #4:
Don’t aim for short term value. Aim for units. It is the number of units you hold or own that decides who you are and what you can potentially make.

Rule #5:
Low Risk High Return does exist. But you have to actively look for it. The LRHR proposal only exist to 2 types of people. The first is those who work hard and work smart actively searching for the money making avenues. Be a trained financial adviser in financial services could be one of the option. The second is the Opportunists who seek to make easy money with little or no means of creating values.

Rule #6:
The most profitable Investment is the investment on yourself.
Allocate 5-10% of your yearly income on training courses. Investment to make yourself better and smarter will never go wrong.

In PFA Asia, we believe that working hard and then working smart are the prerequisites to wealth creation. We subscribe to relationship building and informed decision making for our clients through our ethical consultative approach.

Message from the owner of the picture: “I have money.. But what do I do with it?“