Investing is a skill and like all skills it takes some time to develop it. During this time many investors commit fatal mistakes that cost them a lot of money.Here are 6 mistakes that you should avoid:
Following the latest fad: buying what everyone else is buying won't make you rich. You will simply get the stock when its price is right at the top and just before it begins to drop.
Giving up too easily: many people abandon their investment plan, if they see even minor fluctuations in the market. The market tends to fluctuate a lot from day to day and watching it all the time will simply cause you unnecessary anxiety. Be prepared to make your investments for the long term.
Not diversifying: don't have so much trust in one stock. Spread your investments into many different sectors. This way if one stock doesn't do well, the other ones will cover your losses.
Investing without a plan: take you time to clearly establish a solid plan and define your goals. How many risks are you willing to take and what kind of returns do you expect from your investment?
Being in a hurry to make a profit: greed is a certain recipe for disaster. Don't get swayed by get-rich-quick schemes and options that promise high returns. Prefer slow and steady profits.
Invest only money you can afford to lose: many people borrow money or sell their house or their car to act on the latest fad. Using borrowed money can lead to serious trouble if your investments go awry. Making rash choices is something you may regret in the future. Start small, build up your capital and then gradually raise the amounts you invest.
Following the latest fad: buying what everyone else is buying won't make you rich. You will simply get the stock when its price is right at the top and just before it begins to drop.
Giving up too easily: many people abandon their investment plan, if they see even minor fluctuations in the market. The market tends to fluctuate a lot from day to day and watching it all the time will simply cause you unnecessary anxiety. Be prepared to make your investments for the long term.
Not diversifying: don't have so much trust in one stock. Spread your investments into many different sectors. This way if one stock doesn't do well, the other ones will cover your losses.
Investing without a plan: take you time to clearly establish a solid plan and define your goals. How many risks are you willing to take and what kind of returns do you expect from your investment?
Being in a hurry to make a profit: greed is a certain recipe for disaster. Don't get swayed by get-rich-quick schemes and options that promise high returns. Prefer slow and steady profits.
Invest only money you can afford to lose: many people borrow money or sell their house or their car to act on the latest fad. Using borrowed money can lead to serious trouble if your investments go awry. Making rash choices is something you may regret in the future. Start small, build up your capital and then gradually raise the amounts you invest.
