Principles of investing – something to start with

03-03-2025

Keep the pace

There is one key rule for sticking to the set rules in investing – staying calm. Extreme emotions are not a good advisor. It is not worth making decisions based on both fear and euphoria. Decisions made in fear are too cautious and prevent satisfactory results from being achieved. Euphoria, on the other hand, leads to greed and overly impulsive actions, which can cause you to lose a lot. It's best to prepare a solid investment plan that will help you define your goals, risk tolerance, and strategy. Otherwise, you can easily succumb to a phenomenon called the herd effect. A good investment portal can provide clues to help you find your way around this reality. Investment presentations offered by Lion Money Partners are useful, m.in.


 Rule Nine – Cut Your Losses

One of the oldest rules is "let profits grow and cut losses fast". Of course, this is easier in theory than in practice. The psyche is responsible for this, and this issue is explained by behavioral economics, i.e. a field of knowledge that explains the impact of emotions on financial decisions. In the case of losses, there is psychological resistance to the implementation of the decision. Unfortunately, if prices start to fall, the situation will generally continue to deteriorate for some time rather than change. This will lead to even more difficulties in selling shares. This can be dealt with by carefully planning your trades and using stop-losses, i.e. hedging orders. It is also a good idea to use the information contained on a trusted online portal. Feedback about Lion Money Partners prove that it is a source worth checking out.


Tenth Rule – Keep Profits Growing

The biggest mistake investors make is selling too quickly. Patience and perseverance are important in investing. An uptrend is also known as a "bull market" It is characterized by a series of higher highs and higher lows. Each low and high is higher than the previous one. The best potential time to buy a new asset is when the price is low, as this will allow you to maximize your profit. However, you must not wait too long to make a decision, as this raises the risk of missing out on the upward movement. You can't fight trends either. You always need to make trades according to the prevailing trend. More tips will be provided  by the investment portal Lion Money Partners. There are, m.in, training presentations and other practical materials. Good investment portals are as reliable a source as paper books.


Rule Eleven – Protect Yourself

A stop-loss is a fixed (automatic) order for a specified security. A trader making a buy or sell submits a market order. If the broker receives an order signal to use a stop-loss order, the sell price must be lower than the current price of the sell order. In this case, there are closed and open orders. The former help to limit the risk by automatically closing the position as soon as it reaches a certain loss level. Closed orders are divided into a single closing stop, a trailing stop, and a guaranteed stop. Using stop orders allows you to manage your assets without having to constantly monitor the markets. It also makes it easier to reduce the influence of emotions on decision-making. More tips will be provided by the investment  presentations available at Lion Money Partners.


Twelfth Principle – Education First

The market is changing dynamically, so even professional investors need to constantly educate themselves. That's why it's important to use trusted sources that provide reliable information about investing. Some people still prefer traditional sources, such as paper textbooks and reading materials. In addition, it is worth looking for substantive blogs and seeking advice from people around you who have more experience in investing. Additionally, there are various types of courses available online. Of course, some actions need to be taken before you decide to start investing, but many things come with time. It is impossible to completely avoid learning from your own and others' mistakes. It is best to learn the basics of economics and learn how to control your emotions. This will reduce the feeling of being lost in a rather complicated market as much as possible and reduce the risk of incurring severe losses. Those who want to support themselves with online sources should visit the Lion Money Partners portal. Experienced investors will also find a lot of useful materials to help them expand their knowledge.

Feedback about Lion Money Partners confirm that it is a trustworthy place. Investing is a dynamic process, and once experienced, it is not possible to guarantee the consistency of success. The key is also learning how to deal with losses and manage risks, which can never be fully avoided.

Beginner investors may feel overwhelmed by the amount of knowledge they need to acquire right from the start. Fortunately, with the help of trusted sources, it is possible to organize information and feel more confident. However, continuous education in this area is necessary to multiply your capital. Well-thought-out actions supported by the ability to control your emotions will help you achieve success and goals.


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