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Saturday, August 10, 2019

How to Invest Your Money Responsibly

In the 21st century, investing your money is no longer a long, convoluted process.
Nowadays, you can open an account online and get started in minutes. All you need is
a bank account and an internet connection. However, the simplicity can be intoxicating,
fooling people into blindly investing their money. This may, in turn, lead to them losing
their entire savings. An example is the BitConnect scandal of 2018, which saw people
losing money after investing in a scam. If you'd rather be investing your money
responsibly instead of betting it, this article will teach you how to do it.


First of all, know that most reputable investment sites offer demo accounts. Before
risking your capital, try opening a demo account and using it for a month or two. Once
you get the hang of it, you can start looking into using real money. Keep in mind,
however, that investing real money is more difficult, as your emotions can take hold of
you. Once this happens, you are prone to rash decisions, which can lead to mistakes.
Remember to always keep your cool when investing.


Secondly, it is important to remember the golden rule of investing: never invest more
than you can lose. Before starting an investment account, choose a part of your
paycheck for investing. 50% of your paycheck should go to your monthly expenses,
30% to recreational spending, and 20% to savings. That is if you want to save your
money instead of investing it. If you want to add investing to the mix, you can customize
the percentage to fit your situation. Alternatively, if you have a large sum of money that
you want to invest at once, don't put all your eggs in one basket. Diversify your
investments to ensure that you are safe in every situation.


Another important thing to do before investing is extensive research. Research
everything, from the service you'll be using to the investment options. The last thing you
want is to give your money to an untrustworthy company or invest in a scam. Doing
research is important in every step of your investment journey. You always need to be
on top of the news if you want to make a real profit off your investment. Also, remember
to never invest in something you don't believe in. If everyone is saying that something
will be profitable, but you just don't see it, don't invest in it. It's better to keep your
money and miss out on an opportunity than to believe someone else and lose all your
money.

If you're looking into lowering your risk of losing money, the stop-loss order will be your
greatest ally. A stop-loss order can be placed on every major exchange, and it is a
simple tool to use. You set the minimum value for your investment, and in case it
reaches that amount, a sell order is placed. Once the sell order goes through, your
money goes into your account, stopping further loss. That being said, remember to
place stop-loss orders on all your investments. By doing this, you will be less stressed
about the possibility of losing your money.

Lastly, if you are still unsure about what you're doing, the best move is to hire an expert.
If you";re thinking that an adviser is a waste of money, stop it. Sure, it costs to hire
someone who knows what they are doing, but in the long run, they can save you a lot of
money. A financial adviser will stop you from investing in things you shouldn't, or from
making mistakes.


All in all, nowadays, everyone can invest. However, not everyone can invest wisely. If
you always keep your cool and research thoroughly, your funds will always be safe.