Investment Guidance For Beginners
When it comes to investment even seasoned players make mistake.
In this article I would be highlighting the most common mistakes made by people who have just begun investing.
If you are a seasoned player in the game of investment then you will find this article useful as to remind you of where you might go wrong.
Before we go into details of the common mistake people who think of investment should understand few things.
The first and foremost being there is nothing to be afraid of investments.
Not everybody who invests ends up bankrupt.
Only those how make bad investment choices end up losing money.
Just most empower yourself with complete knowledge of what you are about to do and things will be clear and easy.
Now coming to the common mistakes made by investors: 1.
Failing to diversify: I believe that this is the most com world make while investing.
IT is understandable most common mistake that the people around the world make when it comes to investments.
It is very important that you diversify your investment options.
This will enable you to sustain any loss as your other investment option might compensate for the loss.
If you find investing in multiple field very tough for you because of limited capital and time then you can consider joining an investment club or starting your own investment club.
2.
Buying stocks and shares based without proper research: This is the mistake made by even seasoned investors.
They buy stocks based on speculation and hot tips.
Though this method is considered as aggressive and might reward occasionally.
However most of people who follow aggressive approach without research end up losing all their money.
If you want be an aggressive investor do your research properly.
Know the basic fundamentals properly, study about the company you are about to invest, know the history the ups and downs of the company performance and if you believe that investing in such a company is worth the risk then you can go all out and buy stocks even when they are falling.
3.
Investing without future plan I believe this is the most common mistake made by beginners.
It is good to invest however you need to understand that investing without foreseeing your own financial need might result in collapse of your finances.
It is important that you save some money for your emergency needs, like saving for health, saving for emergency house maintenance and saving money for children.
Only after this can you invest into anything you want.
In this article I would be highlighting the most common mistakes made by people who have just begun investing.
If you are a seasoned player in the game of investment then you will find this article useful as to remind you of where you might go wrong.
Before we go into details of the common mistake people who think of investment should understand few things.
The first and foremost being there is nothing to be afraid of investments.
Not everybody who invests ends up bankrupt.
Only those how make bad investment choices end up losing money.
Just most empower yourself with complete knowledge of what you are about to do and things will be clear and easy.
Now coming to the common mistakes made by investors: 1.
Failing to diversify: I believe that this is the most com world make while investing.
IT is understandable most common mistake that the people around the world make when it comes to investments.
It is very important that you diversify your investment options.
This will enable you to sustain any loss as your other investment option might compensate for the loss.
If you find investing in multiple field very tough for you because of limited capital and time then you can consider joining an investment club or starting your own investment club.
2.
Buying stocks and shares based without proper research: This is the mistake made by even seasoned investors.
They buy stocks based on speculation and hot tips.
Though this method is considered as aggressive and might reward occasionally.
However most of people who follow aggressive approach without research end up losing all their money.
If you want be an aggressive investor do your research properly.
Know the basic fundamentals properly, study about the company you are about to invest, know the history the ups and downs of the company performance and if you believe that investing in such a company is worth the risk then you can go all out and buy stocks even when they are falling.
3.
Investing without future plan I believe this is the most common mistake made by beginners.
It is good to invest however you need to understand that investing without foreseeing your own financial need might result in collapse of your finances.
It is important that you save some money for your emergency needs, like saving for health, saving for emergency house maintenance and saving money for children.
Only after this can you invest into anything you want.
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