4. Know yourself before investment

4.1. What is investment?
“Investment” is a process of purchase financial instruments or other assets in order to gain profitable returns in the future. The investor believes that the income will be worthwhile for the consumed time, inflation rate and any possible risk. We can say that
“Investment” means saving to gain more money and it comes with the risk to aware of. We should be careful when we decide to have an investment. We should have enough information to prepare and to reduce the possible risk from the investment.
Currently in the financial market, there are many choices for investment such as the financial assets – bonds, debentures, stock funds or Tangible assets – gold, fields, buildings, diamonds, jewelry, etc.  The knowledge of the assets that we are investing is important; Investment without knowledge or precaution is highly risk.

4.2. Why should we invest?
Choosing the right way for investment and by the good understanding will help us gaining high profitable returns and fast to get wealthy. Diversification (spreading investment) may reduce the risk from varying returns, and it helps us achieve the financial goal faster.
Beside that, investment capitals are very important for the whole economic system of the country; these capitals will turn to many people who need it via financial centers. They will take the capitals to invest in their business by financial assets – the businesses that need some capital to begin, building factories, purchasing machines, hiring, purchasing instruments, expanding products and investment projects of the state units. These investments will lead to employments and reflect the enlargement of the business and these increase our personal financial status.

4.3. What is the appropriate investment?
Defining the number of capital is an important point to start investment, overtaking the savings or cash for an investment will lead to liquidity problem, and it pressures you.
In the contrary, less capital in an investment may give us not much of the profit and we may lose the opportunity. By the appropriate investment will make the balance.
The thing to consider in managing the capital is we should have some savings and backup money for emergency situation, and we can use the savings in our dairy life for 3-6 months. The capital to invest must be the exceeding money from the savings and the backups. It is problematic to take the savings or the backups for an investment.

4.4. Defining investment policy
Defining investment policy begins with defining the investment goal, for example:
- Investment to make personal wealthy of 5,000,000 Baht for retirement plan.
- Investment for children education cost of 3,000,000 Baht
- Investment for extra monthly income of 5,000 Baht
When we have decided the investment goal, we then can define the returning rates that we will get, and from the returning rates will help us in choosing the appropriate assets to invest. By defining the investment policy, it must cover:
- The investment goal.
- Desired returning rate from the investment.
- Investment duration.
- Assets to invest.
- Capital management.
For instance, if we have 100,000 Baht capital, desired returning rate is 5,000 Baht per month. We should invest for an asset that gains monthly income of 5%.

4.5. Achievement factors of Investment
1. Due to the more profitable returns come with more risks. An investor need to have knowledge and rules in their investment, especially the knowledge in the assets that they are investing including the risk, economical status and other related factors, which these information help you to get rid of the problems because of the knowledge and the rules will be an immune to protect us from greedy mind and the afraid. Keep in mind that investment comes with risks, the investor should learn before decide to do it.
2. Diversification by making Portfolio: will help reduce the risks effectively, when there is an event that affects the profits of the company we are investing in, the company can not pay the dividend. It also fluctuate the stock price that affect our profitable returns. Portfolio is managing the capital to invest more than one asset, for instance if we have capital of 800,000 Baht, we may choose 2 or more of the following assets: state bonds, god, common stocks in Energy and Bank, private debentures, and mutual funds.
3. The investor must realize that the profitable returns and the value of assets vary according to the environment. We should always follow and consider our investment, dairy we should take the time out on following news, reports, analyzing or interviewing from television. These help us on dealing with the problems that may affect our investment.
4. Investment tips
* Investment is not a stock exchanging
* Stock exchanging is not the only choice for investment
* You should have knowledge and understanding of what you are investing.
* Set the investment goal clearly.
* Strictly to the investment rules is the most important.
* Read financial statement and note to financial statement.
* Read the analyzing articles before deciding
* Speculation and speculation position.
* Do not covet and never underestimate.
* There is always a good chance and good time.
* Diversification to reduce risk.