Wednesday, April 18, 2007

Money and Investment


Sharpe et al.(1993), in example formulated word 'investment' as definition follows: releasing asset owned at this time in order to gain surely bigger asset in the future. People involved in investment make money working for them. There have been some people success in investment and some others failed. Some people succeed to get a lot of profit and some others get loss. Someone can succeed once at the same time and failed at different time. That's not always related to 'luck'. People succeed in investment not reaching it as coincidence.

People making difference are because of their knowledge of basic rules of investment and they keep following them disciplintly and consistently, hardworking, and seriously continous learning.

One of basic rules in investment is adapting investment with your personality and needs. That is one thing may look simple but a lot of people wrong at its implementation. This is a key of success investment where no one can stand longer being an investor without this thing. There are 5 questions that require you asking yourself :
1. What do you need: income or capital growth ?

2. How much time will you need to wait the result ?

3. How big the risk can you tolerate ?

4. What is the knowledge level of investment you have ?

5. How much time you dedicate for your investment ?