4 Investment Tips Every Entrepreneur Must Consider In 2021 Entrepreneur Mickael Daussy shares that creating a strategy at the start of the year sets you up for regular investments
Opinions expressed by Entrepreneur contributors are their own.
You're reading Entrepreneur India, an international franchise of Entrepreneur Media.
Many resolutions made at the start of the new year will focus on personal finance and, in particular, how to make it grow. 2021 offers the chance to overcome the uncertainty of 2020. Entrepreneur Mickael Daussy, founder of the trading tool MKD FX, believes that knowing how best to invest the money you have will always be the surest way to help it grow. Here are four tips that entrepreneurs should consider in 2021, as per Daussy.
Develop an investment schedule
The uncertainty of 2020 caused a lot of entrepreneurs to second guess both the market and their investment choices. But now is the time to form a good investment habit no matter the market. Daussy states, "Don't let the fear of a changing market keep you from investing; if you create a schedule and commit to it, then you will see returns no matter how the market changes. By investing scheduled amounts of money regularly, you will be able to learn the market, and it will aid you in future market forecasting."
Stay open-minded
According to Daussy, "A good entrepreneur stays cautious of risk but open to change. Your portfolio should reflect this attitude; you can still invest in the stocks or bonds that have served you well but always be open to new investment opportunities." 2021 is the year to be willing to diversify your portfolio. Fidelity to one area of the market can create a lopsided portfolio that will be at risk of falling like a house of cards if that section of the market tumbles.
"Don't let your portfolio stay stagnant; always view it with fresh eyes and ask yourself how you can keep it rejuvenated with new investments," shares Daussy.
Embrace risk
Facing a brand new year of financial opportunities and potential failures can be overwhelming. There will always be an impulse when investing to avoid risk at all costs, but a little bit of calculated risk can be motivating. Daussy believes, "You can remain cautious of potential investment risks while also trusting your instincts and committing to stocks or bonds that may not guarantee a return. Entrepreneurship is built on risk; by investing in yourself, you accepted the risk of failure. Consistently low-risk investments will always prove slower in providing returns."
Think long-term
It can be easy to become disheartened and demotivated by losses, but even when you face an investment setback, you are still on the path to wealth. Daussy elaborates, "You will always encounter people who will share tales of low risk, high return investments with a short turnaround; it's best to be happy for their good fortune but stay on the path to long-term gains. Always consider the future of your investments and view their returns as a long-term reward, not as a quick cash-in."
Let 2021 be the year that you trust in your financial future and let your money grow. Hopefully, this year will see growth and renewal in the financial market and beyond. But no matter the climate, taking advice and tips from those who are looking to the future of the market will help you weather it.
