If you’re thinking about investing, Rani Jarkas has several golden rules of investing will help you manage the risks and maximize the benefits of growing your money. Currently, Mr. Rani Tarek Jarkas is the Chairman and CEO of Cedrus Investments.
- Invest with purpose
The first of our golden rules of investing is that it’s always best to have a goal in mind. Whether that’s to retire comfortably or just to grow your money. And be sure to include a time horizon for each goal. For example, you might want to buy a house within 10 years and save for your children’s future within 30 years.
- Start early but think long-term
The benefit of starting early is that you can take advantage of compound interest, which is when you earn returns on money that was previously earned as interest. This helps to grow your money over time thanks to its ‘snowball’ effect. So the longer you leave your investments, the more they could grow.
- Understand your attitude to risk
Before you invest any money, it’s important to consider how much risk you’re willing to take – whether you want to be adventurous or more cautious. Make sure you understand the tradeoff: usually, the more the potential return on an investment, the higher the risk.
- Diversify, diversify, diversify
As with many things in life, don’t put all your eggs in one basket! Putting your money into different investments means that if one doesn’t perform as well as you’d like, hopefully some of the others will make up for any losses you make. This is particularly key if you’re new to investing.
- Don’t get emotional or panic about losses
According to Rani Jarkas It’s vital to put your emotions aside when investing. If you’re feeling the fear or are hungry for higher returns, you might end up accidentally buying at market tops and selling at market bottoms. So try not to be reactionary when you’re investing and trust that the longer you leave your investments alone, the better they’re likely to perform.