Top 5 tips for those looking to make a profitable investment

An integrated investment plan should include 5 basic dimensions: retirement, income, investment size, taxes, and risk ratios.

To achieve your investment ambitions, there are deliberate steps that you must follow in order to avoid loss and achieve targeted profits.

Financial experts say that the most important thing is to preserve the money and not to develop it, and the point is that if you decide to invest and your financial assets suffer a loss, then it is better to preserve this money instead of investing it unconsciously.

Most investment experts confirm that risk study is one of the most important reasons for success and investment development.

The US Securities and Exchange Commission advises those wishing to invest - in an article published on its official website - with a number of tips, the most important of which are the following:

1- Map out your financial goals clearly

Before making any investment decision, sit down and take an honest look at your entire financial situation, especially if you have not developed a financial plan before.

The first step to successful investing is defining your goals and risk tolerance, either on your own or with the help of a financial professional. There is no guarantee that you will make money from your investment.

But if you get the facts and information about saving and investing and follow a smart plan, you will naturally be able to get financial security over the years and enjoy the benefits of managing and growing your money.

2- Assess your ability to take risks

All investments involve some degree of risk, so if you intend to buy securities - such as stocks, bonds or mutual funds - it is important to understand before you invest that you could lose some or all of your money.

Unlike deposits in banks that are insured by responsible government agencies, the money you invest in securities is usually uninsured, you could lose your principal, which is the amount you invested even if you purchased your investment through a bank.

3- To invest in high quality companies

Because of inflation and expenses, your money needs to grow over the long term. Achieving the desired profit depends to a large extent on achieving steady growth from investments, so investors have to invest a certain amount in stocks.

Investing in high-quality companies can build investor confidence in the long term, because the investor knows what they have. Time has shown that the right and sustainable investment approach can revolve around focusing on a business that has a sustainable competitive advantage, strong management, and fair value for the price.

4- Let planning help you make decisions

An effective investment strategy goes beyond what's in your portfolio and percentage return. In fact, most advisors do not do integrated planning, which causes them to miss out on opportunities to maximize and achieve investment efficiency.

An integrated investment plan should include 5 basic dimensions: retirement, income, investment size, taxes, and risk ratios. For this reason, it is worth reviewing your investments at regular intervals to ensure that you are taking advantage of the income and investment opportunities that may be available to you.

5- Don't give in to quick reactions

Stop following mainstream media financial news programs and random Google searches, as they aim to stir fears in order to attract viewers and readers.

If you listen or read a lot of negative financial news, there is a high chance that you will end up making an unwise decision about your investments. Instead, let media curiosity led you to seek personal advice.