What to do when your investment declines

Investment risk alone would not matter, because almost every investment gets out of decline and eventually grows. There are many investors who anticipate that the investment will grow. Buy the fund, look at the newspaper for the money, see the loss, sell and drill to get some good term deposits. The loss they have suffered will never be achieved.

When investing, you need to know the answer to the question: What will I say when the investment falls by 1%, 5% or 10% ?. If this is an unacceptable idea for me, this investment is not for me. I have to look around.

It is definitely not a good idea to opt for a stock investment, just because we have heard that stocks are the most out of the long run. If we want the investment to increase the number of pensions, so that their value does not decrease and that it grows constantly. If it is an unacceptable idea for us that we will come to our next pension, it would only be a short time and only a small amount. If we approach possible declines in this way, the investment in the event is not suitable for us and we must look for another one. Don’t embark on an investment, so really imagine: I will save my issued 100,000 K. What will I do next year, and I will have only 96,000 K.? Is it acceptable for me?

Let’s always imagine the worst possibility

If we think that in such a situation we will be completely calm and we will not run out of the fund and that we will wait long, then it is possible to consider such an investment. Let’s be careful not to deceive ourselves. We take it from the textbooks that we shouldn’t sell, so let’s face it. We’ll pretend we really are
firm nerves, but the fact that the fact is different.

Graf:
Hypothetical development of the value of investments in mutual funds. Potte is this monost? Are you ready for it?

Something else is just to see the charts in the textbooks, which fluctuate and something else is really to lose the decline of their own pensions and experience real losses on their own. When watching the graph, you have the advantage that you see the development. He is often optimistic and the fund’s price will rise one day and exceed the previous values. The actual reality is the mountains. There you only know the history and do not know the future. Know the value of the investment before the month or a year ago and know the value of the investment today. Tute that it could grow, but know that you have to keep up with the next drop. What happens when it falls? Your own investment is your own pension. It’s not just graphs on the pope.

If you have no experience with investing and would like to start investing, try an investment that is safe. Don’t go straight to the risky ones, even if they have a high yield. You’d better take small steps and gradually get to know the investment world. First, try investing in safe waters. Here, too, you can experience declines. They will be small and you can get out of them quickly. See how you react to them. And you will think that you are ready to eat, you can try to buy risky investments into your portfolio.

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What share funds can you invest in?

The riskiness of the investment you can make depends on the amount of pensions you invest. Here, under the term volume of pensions, we do not even mean whether it will be 100,000 K or a million, but whether they are for large pensions or just small ones. Badly, how much of your assets are invested funds. If you invest only one hundred pensions and you have the funds safely deposited in building savings and pension connections, you can invest riskier. You can choose a risky investment even if the invested person has only a small amount of your income. With an investment of 100,000 K and an income of 20,000 K, you can make a risky investment. If the investment sold 5% (ie 5,000 K), the loss would not be noticeable.

The situation of the old rentier, who does not work and wants his own saved capital, will look different. If the portfolio had 4 million K, was without income and even wanted a regular rent of 20,000 K msn from the portfolio, he would have to invest more carefully. A possible decrease in the portfolio by 5% means a loss of 200,000 K. This is almost a rent.

Nkte investoi nemaj problmy s trpenm nerv

They are the ones who do not pay their own investment. They used to buy something twice, remember how much they put their pension in there and one day look at the entry from here. There, find out the value of the investment and have a room for a year. Do not monitor the value of investment every week on teletext, in newspapers, on the Internet The approach of mat egmatic investors can be highly recommended. Make sure their activity doesn’t stuff codes. that they will not have to sell when they see a decrease in the value of the investment and they will have to face a loss.


ryvek from the book: Investovn pro zatenky

Length 1: Basic question: for I want to invest
2. dl: How do you want input?
3. dl: Do you want maximum profit?
4. dl: How much can your investments sell?


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ryvek is from the book
“Investovn pro ztenky”
vydan nakladatelstvm
City Publishing,
For more information, visit
www.grada.cz

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