How to be a better investor? Check out 8 simple tips!

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asked Jun 23, 2021 in Electron Microscopy by geekstation (140 points)

As important as starting to invest is knowing how to optimize the performance of your assets. For that, it is recommended to put some recommendations into practice and become a better investor.

With the necessary knowledge, it is possible to circumvent challenges and improve the use of opportunities. As a consequence, it becomes easier to achieve your goals and make your plans come true.

Thinking about it, see 8 simple tips to be a better investor and learn how to include them in your daily life!

1. Know and respect your investor profile

Building a good investment portfolio is an indispensable condition for being a successful investor. However, it is only possible when a basic principle is observed: the profile of the investor. Basically, it presents its risk tolerance.

The profile can be divided into:

  • conservative : it is the investor who has the least tolerance for risk and prioritizes security and liquidity;
  • moderate : represents those who have a slightly higher tolerance to risk, at an intermediate level;
  • bold: indicates a broader tolerance for risk, which means that the investor is willing to embrace greater volatility.

2. Have defined goals

It doesn't matter if you are a novice or experienced investor. For the results to be satisfactory, it is necessary to establish specific objectives. How much do you want to earn from an investment? How soon do you want to redeem the money? How much do you intend to contribute?

In addition to answering these questions, it is necessary to consider the investment term. It is worth having short, medium and long term goals, as this determines how to make decisions.

Your emergency reserve, for example, must be kept in an appropriate choice for the short term - and with easy redemption. If the intention is to obtain retirement income, on the other hand, your performance should be more focused on the long term.

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