Research Before Starting Investment: Your First Investment

We already know the word investment. Maybe many of us have studied the investment theory. But starting investing, it’s often difficult to get started. Therefore we need to discuss research before starting investment.

In this era of technological development, the investment can be an easy activity. You can even do it as a part-time job. You can also run it as a home business. The development of online-based investments allows you to run investments online anywhere.

The ease of investment means that you need to research before starting an investment, especially your first investment. This will prevent you from getting caught up in the Ponzi scheme investment. Or investments that provide unfavorable results. A Ponzi scheme is a fake investment mode that pays profits to investors from their own money or money paid by the next investor, not from the profits earned by the individual or organization that runs this operation.

How to Start an Investment

The investment will be important when we run it. The investment will link the psychological actors to the risks that will confront them. So, after you study the investment theory, you should immediately prepare yourself to enter the investment world directly.

We have previously discussed the need to save to prepare investment funds. We must realize that this investment fund will be bound by time. Therefore you should use idle funds or you prepare funds specifically.

If you already have funds that you can invest, you need research before starting an investment. Research before starting investment will be discussed in this article. Some of the steps you need to start investing are, find the right financial solution provider for you, estimate the investment period you will live in, and form a portfolio.

You can read another interesting topics:
Savings Before You Invest,
Basics of Investment Decisions in Portfolios,
Choose Chicken or Quail Livestock?

Research Before Starting Investment

Research before starting investment will emphasize investment products that are in accordance with your risk characteristics. So before you need to set your investment goals. Then you research several financial products and services that are in accordance with the character, risk profile, and purpose of your investment.

You need to know your preference for investment risk. Generally, there are 3 types of investors in facing investment risk, namely risk taker, risk averter, and risk indifference. These three types will determine how to deal with investment instruments. You need to understand what type of investor you are. We will discuss investor risk types in detail in other parts.

The type of investor in facing risk will determine the choice of investment instruments For example, you face a choice of investment, bond, stock, foreign exchange, or mutual fund instruments. For example, in this case, you will compile a stock portfolio that matches your risk preferences. You will arrange investments in moderate stocks if you have risk preferences that reject risk.