Guide to investment. Part 1

I’m sure many people know that investments can grow their money. The only way to make your money work for you is by investment. I’m sure everybody knows what are shares, unit trust and mutual funds are. All these financial jargons are commonly used by financial practitioners but not for a normal person.

Some people have bad experience with investments and some have very good experience.

People with good experience will find more about investments and will invest more money so that they can meet their financial goals. Some are committed to save more money to make even more money. I will be very happy for u if you have all these kind of attitude towards investments.

People with bad experience on investment will have a negative view on investments and they usually do not believe in any kind of investments anymore. I do not blame them for their pessimism as I too will be angry if I lose my money on investment. However, I realized a pattern as to why these people lose money.

Most of the time, people who have lost a lot of money on investment will have little or no knowledge on investments.

They usually follow what their family, friends and colleagues are investing. There is no research done on what kind of investment they are into. For starters, they should know what are returns, risk and profit. One more reason is also that they have the park and pray attitude, where they park their money and hope that it will grow.

It does not hurt to ask from other people what investments are. In love, what you do not know will not hurt you but in investment and business what you do not know will hurt you a lot. Remember this; investment is made to make money, not to lose money. There are myths about investments. My advice is, in investment, it’s all calculated quantitatively, hence there are no myths to investment. And, there are no such things about luck in investment. It is pure fact finding and calculations of the indices and ratios.