1. Time horizon

It is very important to examine and compare the effect of an investment over a certain time horizon. Truly professional investors are known to invest over a time horizon of 10 years or more. This has many advantages and bonuses: less stress due to market changes. Another advantage is that investing in projects with long time horizons avoids unnecessary gambling, as one does not go bankrupt immediately and can secure other funds and expand one\’s portfolio during the final 10 years.

2. Invest in areas close to your heart.

There may be nothing worse than stepping into a very deep black hole of the unknown. Investing in a commodity, service, or product for which one has no information and does not know its strength or how it works in the marketplace is a complete disaster. It is much safer and more stable to invest in areas that you have contact with in your daily life and are already engaged in.

3. Do not speculate

False promises, this is the term used to describe investing in speculation. We consider speculation to be any investment in which we cannot clearly determine the movement of value in the marketplace. Bitcoin and Tesla Motors are prime examples of speculation where we really don\’t know what will happen.

4. Reducing risk pays off

How do we confront enormous risk and its burdens? Purely and simply, by diversification. Diversification is the sacred foundation of risk reduction, whereby the entire investment is spread across multiple funds and commodities, so that the more funds and commodities you invest in, the less risk you have of losing your entire investment.

5. Discipline Above All

If you decide to do something, stick to it. There is no point in constantly changing your views or the type of strategy you initially chose. Follow a regular routine. Stay informed regularly and, most importantly, be hard on yourself. Because if you don\’t, you will jinx something and it will come back to you in the form of losses or profits.