The most important thing is to establish your investment plan before entering the market, but there is also the most important point that you should be clear about your motives before investing in stocks. There is a clear relationship between the source of funds and the use of proceeds.
The first is the source of investment funds to be stable, as a solid investor, need to have persistence and persistence, especially when investing in growth stocks, must not give up halfway, in the preparation of the investment plan, need to consider the personal income and other factors, carefully calculate how much surplus funds can be used for investment, and income sources and whether stable. The second is the degree of dependence on investment income. If a family is heavily burdened and the monthly income is just enough to cover expenses, then the investment plan must be based on stable public and corporate bonds [-0.02%].
Golden ratio of investments
The most important thing is to have the ability to objectively assess your own risk when arranging your securities investment plan, and to divide your funds into three parts. The third part of the fund is used for back-up, either in the bank or in cash, waiting for a better investment opportunity to arise or to make up for investment losses.
There are several investment ratios for the average investor, depending on the investor's family's financial background, personal temperament and occupation.
Generally speaking, one of the most common investment ratios is to invest according to your personal preferences or habits, dividing your investment funds into two parts. One part is the stable income investment, such as bonds, treasury bills, etc.; the other part is the risky stocks, the proportion of each part is also different from person to person, the character of the steady person to bonds mainly. Can account for 70% of investors, stocks only 30%; in addition, according to the treasury stock network stock expert research found that some aggressive investment is the opposite of the above, while some character aspects of the more moderate investors are in the proportion of each of the two types of investment accounted for half; pure speculators have their own speculative arrangements.
