Hello I’m olivertomo!
As you can see in my profile, I worked in the finance field after graduating from college.
At that time, I still had a negative image about investing.
But as I made my own investments, I felt that not everything was negative.
By knowing the risks correctly, you can manage your assets for the future.
These days, you can start investing with as little as a small amount of money, and the threshold has been lowered.
Then I’ll explain what to watch out for.
Point 1: Asset management based on long-term investment
It is true that investing can give you profits in a short period of time, but that is for advanced users and not for beginners.
When I was working, I had a client who was trading on margin (a method that allows you to trade at three times your assets) and he often had additional losses.
After seeing this from the field I have decided not to trade on margin.
However, in Japan it is possible to earn income from shareholder benefits through cross trading on margin.
Point 2: Separate your investments.
This is an ironclad rule of investing!
You can diversify your risk by investing in a balanced way.
For example, for stocks, you can hold different industries, mutual funds, or buy foreign stocks.
I have a wide range of holdings, including Japanese stocks, mutual funds, US stocks and Southeast Asian stocks.
Point 3: Don’t be swayed by the opinions of others.
The world of investing is for everyone, from beginners to professionals.
So, there is a good chance that your holdings will suddenly be targeted.
Believe in yourself and grow your assets!
There are people who suggest investments in books and youtube, but in the end, use your own judgment to decide what to buy.
It’s good to refer to, but dangerous to believe completely.
Point 4: Analyze the company’s dividend yield and future potential.
Some Japanese stocks have high dividend yields.
But there are companies that are forcing themselves to pay out dividends.
You can check this by using the dividend ratio indicator.
About 35%~50% is considered good.
If you want to invest in a company with a good dividend, make sure you check it out!
Companies that are expected to grow in the future often invest in company equipment without paying a dividend.
Apple and Google are some of the most famous companies.
Point 5: Control your emotions.
This is a challenge to live with, but the same can be said about investing.
I myself have been driven by emotions and have lost money.
I’m glad it was only a small loss. Humans are animals that do not like to lose money, so we think it is important to know how to control our emotions.
Conclusion
If you pay attention to these points, you can manage your assets in the long run.
Sow the seeds for your future self and let them grow slowly!