by Lina Martinez
ROI is a term that investors throw around a lot. Everyone wants a great return on their investment, as it means you’ve made some money. The obvious problem is that not everyone will make money. Some people suffer losses, so how do you prevent this from happening to you? Realistically, preventing losses and improving your ROI is fairly easy - in theory, at least! Regardless of what you’re investing in, there are some key things to think about and consider.
Educate Yourself Before Investing
No matter what you spend your money on, you have a greater chance of success if you understand what you’re doing. The best way to achieve a high level of understanding is through education. Learn about your investments, and you will learn the best ways to go about things. There are plenty of day traders out there that offer educational resources and courses for people that want to go down the very short-term investment route. There are loads of real estate experts that provide seminars for newbie real estate investors. Of course, in this Bitcoin era, there’s no shortage of educational resources surrounding that topic too. My point is that there are loads of opportunities to educate yourself, and you should grasp them with both hands if you want to invest with more understanding and knowledge.
Start Small and Work Your Way Up
It’s proven time and time again that starting off small - and working your way up - is a far more effective method than going straight in at the deep end. Even if you have enough money to make big investments, it simply isn’t worth the risk. Sure, you’ve educated yourself, but you should still enter something of a trial period first. This is where you make small investments and see if your tactics translate from theory to reality. If things go well, you’ll earn a small bit of profit, and can use that to fuel your future investments. The better you get, the bigger your investments become, and the more money you earn.
Never Go All In On One Craze
In the investment world, some crazes come and go. Certain things become highly popular to invest in, and a lot of people assume this means they should put all their money in them. If you want to get the best return on your investments, then never go all in on one craze. In fact, never go all in on one thing in particular. The secret to success is diversifying your assets and investing in many different things. This means you never depend on one thing to bring in a good return. If one investment isn’t doing great, you could still have two or three that are making more than enough money. Be diverse, but also don’t get sucked into a trend or craze and be tempted to invest most of your money in it.
For me, these three principles will always help improve your ROI. It doesn’t matter what your investment area of choice is - real estate, stocks, crypto - each point still applies and will still help!
