How to invest safely in risky markets.
Learn how to invest in bold markets without leaving safety aside.
Do you want to learn everything to start investing better?
Investments considered risky are gaining more space in the financial market.
In order to help investors when buying and selling their assets, specialists created three rules to have perfect risk management. Whether you’re looking for stocks for the long term or Bitcoins for the short, it’s crucial to pay attention to these tips.
1. If you can’t afford to lose so don’t invest
The first rule seems obvious, but when the investor makes his first profits, it is common to have a growing desire to risk his capital even more. But the moment this desire goes beyond the first rule, investment is no longer recommended.
It’s simple: never invest capital you can’t afford to lose in high-risk investments. As much as you believe in future valuations, the financial market may surprise even experts.
If investing in something riskier, like Bitcoins for example, is really in your plans, the money destined for this adventure can never be something that will be lacking at the end of the month. If you want to test this investment, test it with an amount you are willing to lose.
For each operation, determine how much you want to win and, especially, how much you can lose.
2. Don’t invest more than 10% in a single asset.
When entering the equity market, the first step is to know how much you have available to invest. Once you have that number in mind, rule number 2 enters: Never invest more than 10% of that money in just one asset.
The logic is clear. As there is no certainty in these markets, it is unwise to risk more than 1 tenth of your capital on just one trade: avoid an unpleasant surprise to affect your entire investment strategy.
The recommended amount to invest in Bitcoins is even smaller. Analysts believe this coin is more likely to hurt your wallet than the other way around.
Responsible diversification not only protects your capital, it also boosts your earnings.
3. Always rely on experts
To define the assets that will be part of a good diversification, to determine the percentage of each one of them and to stipulate the profit and loss values of each operation, it is necessary to have knowledge of the market. However, to have all this in hand you don’t need to be an expert.
Creating a winning portfolio is not an easy task. However, few people know that it is possible to count on professionals to help beginners and experienced investors in their trajectory on the Stock Exchange.
When it comes to Bitcoins, on the other hand, the market still doesn’t have great experts in this currency: the analyzes are still not very precise and the patterns are unknown. For this reason, if you seek to manage the risk of your investments, it is suggested to focus on the traditional financial market.
With this in mind, a new brokerage firm emerged with the objective of making the investor’s experience in the financial market simple. Through Toro Investimentos, the client has access to a carefully constructed portfolio according to their profile in just a few clicks.
