Investment is more than just risks and returns!

In the world of knowledge based economy, information can be passed faster than a speeding train. Information can be attained from mediums like internet, calls, sms and newspaper etc. With all these information available at the tip of your fingertips, buying and selling of your investment is done faster.

However, some of this news can be fact and some are just speculations. Speculations can be the market’s greatest enemy. Half of the time, people buy and sell their investment because of market speculations. ‘Hot’ tips are very common among investors. These ‘hot’ tips sometime kill investors as they do not actually analyse the tips that they got.

Brokers and bankers are famous people for investors with little or no knowledge about investment to get tips from. Whatever that brokers and bankers share to investors will be regarded as a hot and valuable. investors react to these ‘tips’ almost instantaneously hoping that they will not lose money or hoping that they will gain a large amount of returns. At the end of the day, investing on an asset is based on who gets the best ‘tips’ and which brokers or bankers are the most credible.

Investing on an asset is actually more than science. You will need to do a lot of research and acquire some skills on technical and fundamental analysis. There are a lot of things that you must do before you invest your money. It is your hard earned money at the end of the day. Investing your money on an asset is not about ‘parking’ your money in an asset and pray that it will grow!

Does this mean that you can never be rich and can never invest your money because you do not know how to? The answer is no!

There are courses, seminars and people who actually can help you to invest your money. This help you get will also incur some costs but it is an investment if you think about it. In order to be success in your investments, you need to know the science of it. The more in- depth you know about the investing, the less money you can avoid to lose. Investment is more than just risks and returns!