Becoming a successful investor - that's what many people who invest their money in the stock market and, for example, invest in stocks. But can you learn to invest like that? What do you have to consider when investing money? What is the best way to answer "invest in what?" Ali Meli, Founder, Chief Investment Officer, and Managing Partner of Monachil Capital Partners, summarized the most important investment rules for us.

Ali Meli centers on investment.

Before we invest in something, let's address the question: What exactly is it? A look at the definition of investment helps: The term stands for investing capital or money.

The word is most commonly used today. The goal is usually a return. This means that anyone who decides to make an investment (or an investment or investment) expects something in return - the investment should be worthwhile.

This is exactly the goal of private investors, states Ali Saadat Meli. These top rules must be observed for successful investments:

Define your investment goals precisely.

It is very important to start by making it clear where you want to go. Are your investments about providing for your pension, building up assets, or saving for a specific financial goal (dream trip, new car, property)?

The more clearly you define your goals, the easier they are to achieve. When it comes to your investment, the question also arises: How much money do I need, for example, to make the down payment for the new house or car or to close the pension gap later on? So, be as transparent as possible about the specific amounts involved and when you want to achieve your goal.

For example, instead of the general wish, "I am planning a property investment," formulate the following plan: "I want to have the down payment for a property purchase available in 10 years at the latest. For this, I need around $100,000".

This way, you can set about realizing your wishes in a very targeted manner rather than simply hoping that your desire for your own house might come true at some point. Instead of dreaming, Ali Saadat Meli suggests starting to operationalize and implement your very personal wishes—the basis for a successful investment.

Never put all your eggs in one basket when investing

There are always tragic examples of private investors who have lost much money when investing in shares.  The alternative, however, is not to open a call money account or leave the funds in a checking account - after all, that brings almost no return, and banks and savings banks often charge adverse interest on it.

A clever way is to set up your investment worldwide - and thereby benefit from the overall development of the capital markets. However, only some can afford to buy promising stocks worldwide. However, even with tiny amounts, this can be done quickly using index funds, so-called ETFs (meaning and explanation in the ETF Wiki). This way, you are well protected against a single stock delivering a poor performance and still benefit from the development of the capital markets.

Passive investments bring more.

Another crucial outlook by Ali Meli! You will come across very different approaches when looking for the best investments for your money. There are active investment funds (what an investment fund is, explained) that rely on achieving the best performance in the market through constant buying and selling activities. But do investment bankers who are supposedly so successful achieve better returns this way? Or do they produce unnecessarily high transaction costs that hurt the development of the investment?

Waiting is not a good idea.

Especially if you have big goals, such as building wealth or retirement provision, the following applies when investing: time is your greatest ally. Mathematically, this can be explained by the compound interest effect. If your investment yields an average annual return, this effect will undoubtedly increase from year to year.

Successful investment - it's possible with little money

It's a common prejudice that you must be rich to build wealth. But it's simply wrong. Those with little money today have to think all the more about tomorrow and the looming pension gap in old age. Planning is, therefore, all the more critical, says Ali Saadat Meli.

Keep investment costs low

The question of costs is essential when investing: high fees for investing money directly reduce the return on your investment. If you pay an annual fee of 1.5 or 2 percent to an asset manager or your bank, you will de facto lose capital every year with a lower return,

Key Note: It's not just important what you invest in, but that you pay attention to the costs involved when investing.

Ali Meli updates on other investment forms are becoming increasingly popular: passive ETFs and digital asset managers are usually the cheapest options. They are also the most straightforward way to diversify the risk as widely as possible in your investment by spreading it worldwide.