Small Profits Everyday or Micro Profit System. That’s the key to building a large corpus over a relatively short period of time. As an investor a very small one at that, I did learn some great lessons along the way on the why and how of investments. Investments carry risk and can often be a gamble in the long run. Depending on the investment made there are chances that it may help your principal go through the roof and on the flop side it may ruin your happiness.
However along the way, I learnt a new investment strategy that significantly cuts down the risks on investments and helps grow the principal to heady proportions when implemented correctly. There are some key traits to this strategy:
- Avoid Greed. Be Conservative.
- Avoid Panic. Exhibit Patience.
- Avoid Gambling. Check for the right signs.
- Avoid Overestimation. Take your profits however small they are.
Any profit is better than “No Profit“. Its a very powerful aspect of the Micro Profit System.
Here is the strategy for the active investors:
Whether it is shares, real estate or any other investment, this is how it should work.
- Select the instrument to invest after checking its past history and future potential. Do the homework.
- Once the instrument for investment is selected, invest an amount that you are not worried about losing. This is any amount that is safe and will not turn your life upside down if you were to lose it.
- Invest the amount and decide on the exit immediately. So lets say it brings you an overall profit of 1 to 5 % if it is related to shares, funds, gold or currency, sell off the investment and take the profits. If it is a real estate investment, you may sell it in a short period of time for a smaller profit lest say 10-20% in this case.
- Invest the principal again and keep repeating this strategy in short bursts and your returns will start to compound and grow without you realizing it.
- Continue doing so over a prolonged period and you will realize what a smart strategy this is.
- Once you have made a significant amount, you can take out your principal and continue investing with the “House Money”.
- Learn to do this with discipline and you will master the art and keep getting better and better.
Go for it!!! If you are new to investing, this is definitely the way to start- The Micro Profit Strategy!!!!!