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The three commandments of investing to live by

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Investing can be a great side hustle, but it can also be quite risky. When you invest, you are pouring money into a source that may or may not pay off. If you are new to the game, you might want to start off with penny stocks. Penny stocks are a low-risk option with fantastic potential gains and could be the best possibility if you are eager to grow your capital without putting a lot on the line to do it.

Of course, there are various different types of investment. You can invest in property, in stocks, in energy supply companies and the list just goes on. But regardless of what type of investments you make, there are always set rules or guidelines to follow. These guidelines will ensure that you do not run into trouble investing and that you do get a great ROI. We can refer to these guidelines as the commandments of investing.

Thou shalt not gamble

You might hear people refer to investing as gambling, but this is not true at all. At least, it shouldn’t it be. When you gamble, you have no knowledge of the outcome. Don’t let anyone tell you differently. While there might be skill involved, such as bluffing, gambling is always based on luck. It doesn’t matter how well you can bluff in poker. If you don’t have a great hand, you can’t win. But gambling is different because with gambling you can, to an extent, choose the cards you get dealt. You’ll be able to look at information and decide whether an investment is worth making or not. You should be doing this because if you’re not then investing does become gambling. Rather than buying stocks, you might as well take a trip down to the tracks.

If you are worried about your decisions with gambling, then you should think about speaking to a broker. They should be able to put you on the right path.

Thou shalt not stagnate

Do be aware that it’s important when investing that you have an escape route. If you are investing in shares, for instance, you should have a way to sell your shares if the situation calls for it. If you explore the cheapest way to sell shares one off, you’ll discover there’s no need to pay off an expensive service. Instead, you can use an option that’s great value for money and get out fast when your shares take a hit.

Thou shalt not overspend

Don’t try and invest more than you have. It can be tempting to overspend particularly if you think you are on to a sure thing. But no investment can ever guarantee a certain return of profit. So, make sure you’re not risking more than you are comfortable to lose. This doesn’t necessarily mean that you can use loans to invest, particularly in things like real estate. You do however need a contingency plan of how you’re going to pay it back if things go south.

Follow these three commandments of investing, and you’ll never get in trouble with this side hustle.

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