There are so many options to choose from when it comes to trading and investing. While every person has his or her own targets that may affect trading and investment behaviour, and time frame, setting up a clear rule can help a lot.

Here are rules that can be useful to both investors and traders.

  • Choose an investment product that you understand.

It is advisable to invest in products that are forthright and easy to understand. This will make it easier to check whether the investment in question is a viable venture. If you have some knowledge about a certain industry that other business people find complicated, this is also a good venture to consider.

  • It is safe to invest in the best companies.

Invest in companies that have established their brand and are strong financially and business wise. If trading online, chose platforms like NAGA that will never let you down. However, you should be aware that in some sectors, the notion of a brand does not apply. These areas include the mining sector, where the brand of mining company does not affect the product. Preeminent brand’s stock is hard to come by, the fact that they are rare makes it hard to acquire, thus making it pricey.

  • Focus on companies that pay dividends.

As much as there are good companies out there who are worth investing in, but don’t pay dividends, it is good to give priority to those that do. Google doesn’t pay a dividend but it has very good stock that everyone would wish to have. The point is, spread your portfolio in a way that the majority of your investments pay dividends.

Regardless of your level of experience in trading or investment, try to formulate a clear strategy before sowing your seeds in these investments. Be sure to set short term and long term goals, and control the risks to achieve those goals.