How to start investing fearlessly

Want to invest but afraid to do it? Here's a guide to getting started without making a mess. or at least without probably be a disaster. Because the first thing in investing is understand that you are always at risk and that it is impossible to reduce to zero.

If we are not willing to face this, investment is not our beach.

In fact, the key to getting started investing correctly is know some uncomfortable truths and dispel many myths About the subject.

And how the things we can invest in change over time, go up and down, good now and not tomorrow, you have to understand the principles. And based on these principles, choose what to invest in according to the situation and the moment.

I know that an article with “secrets” and “foolproof recommendations” is more attractive, but That does not exist.

Here we will see a guide to start investing wisely, aimed mainly at those who barely know the subject. I know many readers are seasoned investors and a lot will sound “basic” to them, but today it's time for others.

Likewise, it is necessarily an incomplete guide, as the subject spans several volumes. So I had to leave a lot out and be guided, like Pareto, by include the few things that I think are most important. That is, what I wish I had heard when I started.

The basic rule for investing (and for everything)

Ignorance is the biggest tax we will pay when it comes to investment. And also when it comes to anything in life, but that's another matter.

As soon as, We never invest in something we don't knowThat's the first rule.

Handbag? Exchange? real estate? Gold? Art? If we don't fully understand how something works, we abstain invest.

In the current context, a minefield full of coaches, gurus and people who thought that the wolf of Wall Street it was an instruction manual, admit ignorance and strive to learn from credible sources it is an act of bravery.

The most common mistakes to avoid when you start investing

Everyone promises that you will get rich, but let's start with something more important, don't get poor.

For this, one of the best ways to learn something, including about investments, is to start with avoid the most common mistakes that lead to failure.

• Investing is a long term game, goes in the proper sense of the word. so none of intraday or systems to win tomorrow. They only work for those who sell these courses, for the treasury and for the brokerswho between commissions and taxes will be happy to empty our pockets.
• Do not invest in the “action of the moment” recommended on Youtube, in get-rich-quick systems or in values memeNFT, crypto stuff that you don't understand or the Dutch tulip variety I'm touching on right now (okay, that wasn't a beginner's reference, but I think you get the point).
• Don't worry about other people's earningsdon't get carried away by it FOMO (Fear to lose or fear of being out of fashion, while it seems that everyone wins). It seems incredible that this has to be said, but here we are.
• Don't get carried away by emotion is the enemy of investment. He acts according to a long-term plan and according to a system.
• Don't bet it all on one card. That's not investing, that's betting on a horse in a race.

The conclusion from reading this is that sensible investing seems like a slow and boring affairand that I am putting more fear in than I remove.

Well, that's exactly what we should assume and that we should respect when starting to invest. Who doesn't have loses first.

The basic principles to start investing without fear

Given the above, we can deduce most of the fundamental principles to start investing. The most important would be:

• Invest in what you know. Yes, I'm heavy. And Warren Buffett, one of the most successful investors in history, too, as it's his most repeated advice when asked.
• Invest with a long-term perspective. I'm talking about years.
• Only invest the money you are willing to lose.. The mortgage payment or the week's purchase is not touched.
• diversify. Which doesn't mean scattering it among a thousand little things that will lower overall profitability, but solid, unrelated investments that mean that if one goes down, the others won't be dragged down.
• manage risk. Which implies, in addition to not investing what cannot be lost, systems, which are the antidote to emotion. In practice, the most basic thing is to place loss limits at which you will sell to stop the bleeding when you fall to that level. In the stock market they talk about stop the loss of, a threshold value for the low that, if reached, triggers a sell order, no matter what the emotion says. When you learn about the stock market, if you decide to invest there, you'll be looking at it in depth, but it's a useful general concept.
• Know the taxes. When it comes to profitability, the Treasury wants its share, remember that and also remember that, in general, the longer you invest, the less you usually take out.

In addition to the above, it is important to understand that investment is proportional.

You mean that you earn according to what you put in. If you put in 100 euros, you can't expect it to become 1 million. To make money you need moneythe world is cumulative and uneven.

However, we economists soon learned the power of compound interest. That is, that small amounts, over time, can yield decent mountains.

For better and for worse, that time passes faster than we think and we always thought that if we had invested 5 years ago, we would have something now. Better a system of putting in what we can each month than letting it sit and be devoured by inflation and compulsive spending.

what to invest in

Given the above and, curiously, when talking about investment, there is life beyond the bag. You can invest in many things, but the main ones are:

1. titles: In times of high tariffs, as at the time of writing, they are an option to consider. Bonds are a form of investment where you lend money to a company or government. In exchange, They will return it to you, with agreed interest, after a few years.. They can be a safe and conservative investment option for those looking for long-term returns.
2. Money: a form of investment in which your money joins that of other investors and is placed in a diversified portfolio of assets, such as stocks, real estate, past titles... good option for those who do not have time, interest or knowledge enough to make an individual selection of these investments.
3. pension plans: the most annoying thing in the world and it seems good to me, boring is a good compass in wise investment. Take a good look at what they offer, chances are you'll want to invest in it depending on the overall situation, yours and the plan.
4. Real estate: If you have enough money, you should always consider them. It can include buying properties to lease until they sell at a higher price in the future, buying land… Historically, they have been the safe investment par excellence, but you need capital initial.
5. stock Exchange. That place full of wolves and stocks you buy and sell. It is a world unto itself, which would require an encyclopedia of its own, suitable only for those in the know. its true mechanisms. These are similar to those in a casino, where some manipulate the price and the boom and bust cycles, to deceive those who don't understand what goes on behind the scenes. Cynical? Yes. Real? I'm scared too.
6. Collectibles, art, and similar items: paintings, old coins, rare books and other valuables. Another world with its own rules that requires in-depth knowledge.
7. Gold, currencies, futures…: There are more investment options than meets the eye, some quite exotic. It doesn't matter, the same principles still apply.
8. direct investment in unlisted companies, microcredits, collective loan… Today, there are more options than ever before, especially for direct participation in promising small startups in need of funding or investment partners. Very dangerousbut there is.

How and which one to choose?

I'm sorry I didn't live up to the expectations of some, but I was hired to look into issues in depth and tell the truth beyond the clickbait.

And that truth is The answer to almost every important question is it depends..

Disappointing? Yes. Real? I'm scared too.

Everything will have to do with our available money, the moment, the possibilities at our disposal, how is the context of each option and the general economy…

• If we have a lot of capital and little interest, real estate does not usually fail in this long term what we talk about
• If we don't have that much capital, but we have this lack of interest, funds can be an option to invest and forgeteven those administered by monkeys.
• For those who have more panic in times of high rates, bonds or pension funds will cushionat least part of the inflation blow.
• For those with the time, willingness to learn and cold blood, the stock exchange can be the place where winning at the expense of those who think they are smarter than everyone elsesetting up YouTube channels about financial independence without finishing high school.

In addition, I also learned that it is necessary run in the opposite direction of those who claim to have “the answer”. It's one of the few tips that haven't failed me yet.

Investing is serious business, which needs more than an article. But if you want to start without fear, and without stumbling at the start, this guide is a must. compass to start the journey. Then we can go deeper by learning about the options that best serve us.