Investment: Do Your Very Own Investment Plan

Do you have any investment plan before you carry out any investment? Do you have a target what are you going to achieve with this investment plan? Well, if you do not have one, do it now, by yourself.

In my previous article which entitled “Do You Know What You Want?”, I emphasis that only you yourself know what you want. Say, you want to have annual return of 10% on share investment to fund your children’s educations, you should have an investment plan on how to achieve 10% p.a. For example, your plan might be first to shortlist those counters you interested in and identify the right time on buying and selling. In this case, since your plan is well defined, it will provide you a road map to achieve your target.

A good plan is the result of continual learning. You should learn more in the area of investment you are interested in. The more you learn and understand, more precise and effective plan can be generated. My advice is to do it yourself. Plans prepared by third party might not at your best interest. Do not expect other to do exactly what you want. This is because they need earning for their living and, therefore, the plan might be bias.

Quite a number of times, my friends regretted to have investment on this and that. When I requested them to elaborate more, I realize that the cause of wrong investment decision was simply due to lack of understanding. For the area you have limited knowledge with, you may easily believe to what those so-called “experts” say. Equip yourself with knowledge is the sure way to protect yourself.