4. Know About Investing Time Horizon.

Investment time horizon is the amount of time until you need to sell your investment. It will greatly help you, if you are having trouble to choose what kind of investments you should consider.

Among the short investment horizons equities are the riskier asset because they carry higher level of volatility.

The investment time horizon is divided into three types, which includes short, medium and long.

Short term investment plans are less than 3 years. In this the investor cannot take any second chance with his money. The medium term is between 3 years and 10 years and the long term investment is longer than 10 years.

5. Calculate Returns

Let’s consider that you bought a share for 5 years and by the end of the 5th years the value of your invested money has doubled and you are not aware of it. After completing your 5th year you might sell it off. While selling it, you might sell it off to the lower price.

To avoid this, you should always keep a track of ups and downs in the market. So when you decide to sell your shares, you will have a better idea of the selling price and the right time to sell.

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