investment

What makes a sound investment? Does following investment steps contribute to achieving the investor’s goals? Do wrong investment decisions cause losses to the investor?

There is no investment suitable for all categories of investors due to their different goals and risk tolerance, as the investment process for young people cannot be the same as for older groups. This is evident when talking about the financial instruments used, such as stocks, investment funds, deposits, and other financial instruments.

These differences combine at the investment stages, beginning with the determination of the investor the level of risk consistent with its objectives, and then analyzing the selected financial instruments. Methods vary from company-based fundamental analysis to technical analysis results. Which depends on price movement. After the analysis, the optimal portfolio for the investor is formed, and finally follow-up. Evaluate the investment portfolio periodically.

It should be noted that there are practices that investors should avoid. Investors may be influenced by social media in their investment decisions, such as an investor purchasing a stock because a recommendation appears, without considering that it may be false and meet the personal interests of the publisher.

One of the most common practices is to invest all the money in one financial asset, such as investing in a single company share, without considering the company's Unsystematic risk, which can be easily mitigated through asset diversification Which .contributes to preserving and developing the investor’s wealth