Fear of losses, lack of time and insufficient discipline cause many investors to abandon financial plans from the first months of the year, but applying simple rules such as automatic savings and diversification can help build a solid portfolio in the long term, XTB analysts say.
"Every January, financial objectives rise to the top: a more carefully constructed budget, a safety fund and increasing savings. However, a gap appears between intention and action that widens from one month to the next, most often due to a lack of time, uncertainty and discipline. Investments are not about the perfect moment, but about consistency. And consistency is built through a simple, repeatable plan", XTB informs.
So, with a smartphone and a minimum of financial literacy, anyone can put their money to work. Even so, moving from intention to action involves more than willpower, and a strategic plan is necessary, the analysis reads.
Many novice investors postpone the first step because they feel they do not know enough. Financial education is essential (only 18% of EU citizens have a high level of financial knowledge), but perfection is the enemy of execution, XTB analysts point out.
Therefore, one should not wait for the ''right moment''. Trying to anticipate the peak or minimum of the market (market timing) is a losing game even for most professionals.
In other words, it is better to start today with 50 euros than to wait a year to start with 500 euros. The time spent in the market is more important than the moment of entry, the cited source mentions.
Investments involve risks, and the best way to manage them is through knowledge. Financial education helps to separate the noise from useful information and, above all, to control emotions. In the market, fear and greed are the biggest enemies, and a logical and well-structured plan is the best defense, emphasize XTB analysts.
Platforms like XTB have democratized access to the markets, but also to knowledge, offering educational courses and webinars.
"Financial success is rarely the result of luck. Rather, it comes from discipline and consistency. In this process, capital begins to generate visible results in the medium term, and in the long term the cumulative effect can become truly powerful," the quoted source also mentions.
XTB offers people around the world the opportunity to manage their money in a smarter and safer way. Currently, the XTB investment app helps over 2 million people achieve their financial goals. With XTB, clients can invest in stocks and ETFs with holdings, create personalized investment plans, and trade CFDs on indices, currencies, commodities, and cryptocurrencies. In addition, they can benefit from an interest-based return on uninvested funds and manage payments and withdrawals via a multi-currency e-wallet.
The XTB app also offers an extensive library of educational materials and courses, and the customer support team is available 24/7.
Founded in 2004 in Poland, XTB is a technology-focused investment company, regulated by several authorities around the world and registered in Romania with the ASF. Since 2016, XTB shares have been listed on the Warsaw Stock Exchange.
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