Don’t Be So Dumb – 5 Mistakes That You Make Often As an Investor

You might have heard about the concept of the saving on a rainy day. It has been popular among the people for a quite a long time. It is somewhat virtually instinctive to get prepared for the uncertain future by setting some of the problems aside.

Even if we set aside those savings, you have every chance to face the potential problems once more. Starting from insured Savings to Stock Exchange and Real Estate, the savings work hard for us. We save in the hope that we are going to lose nothing in the entire process.

However, investors still make some wrong moves. Here,you will find five dumb moves that investors often make, and they should avoid it.

·         Staying Away From The Invest

One of the biggest mistakes investors often make is to stay away from investments. You do not have to wait for the raise, inheritance or any kind of the lottery win. If you are able to save 5 bucks every day, for the next 30 years then you can earn 10% on it. This is enough to change the life for you.

If you are not able to save that $5 then you should start tracking the expenses. You will come across online savings tools like Mint.com and PowerWallet. Services like this help you to set the goals and track the flow of the money.

·         Do Your Homework Before You Invest

When you think to invest in riskier assets like stocks, one dumb move that investors often take is going by their “gut instinct”. It is a good idea to start investing in the plan like regular savings to have better returns by the retirement. However, investing in the companies whom we do not know is really a bad plan.

If you are putting your money under the security, then do not invest it without a clue. If you think to invest on stocks, then do thorough research and gather information, which are relevant.

·         Investors Are Very Impatient

Going by the words of the stock exchange broker Stacy Johnson, you need to live as you are going to die tomorrow and invest as if you are going to live forever. If you are impatient in treating the stocks you buy then you are going to commit the biggest trading mistake.

Look at the market carefully. Wait for the opportunity when the company stocks have better chances to score. If you look at the tree for 24 hours, you will be convinced that it is not growing. It is safe to fix the investments, since you could miss out the big opportunities if you are the game changer.

·         Staying Away From Diversifying

If you invest in stocks then you have to face two risks in common. One is the market risk,and the other is the company risk.

Market Risk – if the whole market tanks then your stocks too will do so.

Company Risk – it is the risk associated with the particular company performing poorly.

It is hard to eliminate the risk, but you can reduce the company risk in investing in many companies. Diversification is the key to success. You will notice that by the time stocks will be doubled than you have anticipated. This is due to the diversification, which you have adopted.

If you are not able to own a reputable company then go for the mutual funds. It allows you to won a slice of companies with an investment as little as $50.

·         Avoid Taking Too Much Risk

It is the wish of almost every individual and investors to double their investment overnight. However, if you go on swinging for the fence, then you are going to strike quite often. Even there are investments that are similar to gambling. As the rewards are huge but the risk behind them is also quite large. Go for safer investments. For that, you need to undergo thorough online research and study the company objectives on whom you are going to invest.

Get free from the burden of investment risks with these five quick ideas now!!!

Author Bio : Moumita Dasgupta, a financial blogger and the owner of bizandfiz, shares her knowledge and expertise of various finaical topics. A clear view on market, business, forex, funds, personal finances etc. are the subjects she perfectly underlines thorugh her articles.

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