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Essay on Why Diversity is Important

All people with the development and personal growth face the issue of the relationship with money. Someone tries not to see the issue, someone turns the process of accumulation in a fixed idea.

Previously, I also lived with the idea that money is something in itself of course, and how a working person cannot have them? But with the enrolling in the university, my life had changed. I was embarrassed to take the money from parents and I went to work, to have a good supplement to the scholarship, or rather it was the scholarship that was an addition.

To squander the earned money was more difficult, but I found a good way. The idea of ​​investing came to me pretty quickly, it seemed interesting to me, the world revealed itself in a different light – financial.

It was in 2007. I decided to first invest my money in the bank. I made a deposit at 7% per annum. But two months have passed, and I, not happy with the results, transferred the money to the small regional commercial bank. It was already 12.5% there. After 6 months and regular completions at the end of the term I had about 30,000 – big money for me.

I decided to increase the risk and invested in Mutual Fund shares of rather large management company. Foundation presented a fairly high income at 27.5% for 9 months and in conjunction with all the savings I had about 105,000.

It was early 2008, I, elated with the success, decided to start to manage my money and opened a brokerage account. But having decided to diversify my assets, I left 60,000 in shares in mutual funds, scattered in several management companies, and the rest put on a brokerage account.

I read books on investing, which was able to learn (I do not have economic education), acquainted myself with the newsletter – I gave 4 hours a day to it. Needless to say that my entire salary was transferred to the account. I was doing this the crisis got me.

For 6 months, my capital decreased by 73%, as it turned out, all of my assets were represented by shares, which rapidly lost their value. I lost no money, but the result of the last year of life. I was too hazardous, not experienced, and too greedy to fix the loss.

I managed to save about 50,000. In March 2009, I transferred them to deposit, just at the time when the stock market went up actively, but I refused the idea of ​​investing. I learned the hard why diversity is important, yet my experience is something special.

I have read many books, so to speak, deeper content. And now my main rule: do not hurry and plan your investment decisions for a month. Now part of my money is invested in Mutual Fund, which I’ve chosen on my experience and understanding, the rest of the money is in the bank.