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									TIPS FOR INVESTING Decide the investment that appropriate for you
On the investment decision some of the people success while some other failed. Some of them still able to maintain to get the gain while the others loss it, some of them success in a short time while some others able to maintain the success for the long term. Whatever happened this does not related to the 'fortune' factor. And people who success in investment do not achieve it by a sudden fortune.

What makes them success are their knowledge about the basic investment principles and how they implement it in the consistent manner, discipline, hard working, and keep learning persistently. One of the basic rule required to invest is to adapt the investment according to your need and personality. Something that might looks so simple, but lot of peoples failed in the implementation. This is one of the key for the success investment, where no one can survive to become and investor without it. To adapt the type of investment that appropriate with your need, 5 questions need to be raised to your self: 1. What do you need : Income or Capital Growth? Some investment only provide the income and with no capital growth (e.g. Deposit) while the others could give a big capital growth and provide a low income (e.g. Shares, property). Both investment have a negative correlation. The needs for money in order to adequate the daily requirement will determine the way you choose the investment. For example, someone at 40 with high income may interest invest in shares, which is emphasizing the capital growth compared to retired one who may interest to investing in deposit which give an interest income every month.

2. How long do you wait until you can see the profit There is an investment which offers gain within a month (e.g. Deposit). And the others may required 25 years to get the optimum gain (e.g. Property, forestry). You need to be clear about the time duration of your investment. By choose the wrong duration time for investing, it will only caused you experience the loss, for example by placing the money for the short time in the capital market. 3. How big the resk that you still can bear? You need to know the risk level that you still can tolerate, either psychologically or

financially. If you have a solid financial situation, you may try to take the investment with a high risk with potential high gain. But if you are not very strong financially, you must say no to any temptations to double your money with the possibility high risk exposure. The age of the person to invest is also have an important role. A person at 60 surely will choose to invest with a very minimum risk compared with a person at 35. An aggressive personality at 35 still have a lot of time to recover financially from the mis-investing. Therefore, they are more steady to take a very high risk. The other thing which is important is your psychology. If you tend to be worry about a high fluctuation (which may probably make you have insomnia every night), you should stay away to take the investment with very high risk. Psychology aspect is very important. First, money and the investment should make you prosper, not disturbe you. Secondly, you not allow your emotions (scared, greedy) to decide you to invest. A decision to invest should come from the common sense instead of emotional decision. 4. What is the level of your knowledge about investing? To invest required skills. To invest does not always require a complicated calculation. Commonly only need a knowledge in a simple arithmatics like add, substract, multiply, and devide (e.g. Deposit, portfolio). A professional investor (like investment manager) may require a complicated statistical model to analyze the value of obligations in the secondary market or to decide a common market price for shares. Another skill that may required is the communication skill (e.g. In the property industry). The best person who success in investing in the property industry is the person who have a high skill in negotiations. 5. How much time you dedicate for your investment? Your selected investment will decide how much time that you need to provide accordingly. Usually, by investing in shares will require a very much time (except you let anyone else to manage it for you) compared with put the money into deposit. Everyone should measure the value of their time. If you have a high income and you invest to the investment which require time to manage the value of your investment, it may be better if you hire another person to do it more better (like investment manager) while you keep working (where you still get your income as usual). From the points above, have you decide which investment that appropriate with yourself?

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