Investing your hard earned money can be a daunting task. Obviously you want to urge as much interest as possible and have your money work as hard as possible for you. Unfortunately all investments are open to the one thing that we all ought to deal with and that is risk. investing in some ways is about managing risk. While high returns are possible, it usually comes with high risk. while very safe and secure investment are available it usually comes with a low return on investment.3 Common Investing Mistakes That You Need To Watch Out For Click To Tweet
So often novice investors get seduced by high return and even the promise of a “fail-safe” investment opportunity. The truth is that investing needs a lot of research and a level of learning. You simply cannot afford to invest “blindly” in this day and age. With that in mind, here are three common investing mistakes you would like to observe out for.
- Handing your money over to a fund manager or broker
How easy is that. you simply take all your investment capital and hand it over to a professional broker or fund manager who invests it for you. After all, they are the professionals, right? Well, although getting advice is important and dealing with skilled brokers and fund managers is important, you and only you’ll be responsible for your investments. no one can care for your money like you do. never take your eye off the ball.
- Not diversifying your investments.
This is quite a common mistake – especially if you’ve got success with one particular investment or investment type. Any good book on investment will encourage you to diversify your investments simply because it spreads out your risk. putting all your efforts into one stock or one type of investment means that when things return crashing down you can lose everything. If you diversify then you can weather almost any financial storm.
- Jumping onto “hot trends” and tip-offs
How many times have you heard of people who claims that their brother-in-law knows a broker that told him that stock XX will double in value over the next week. Or at least one thing similar to that. the truth is that these so-called hot tips never work out. don’t trust them. don’t let yourself be guided by fools. Unless you get advice like that from a legit and respected trader or investor, do not do it. finance is all about making good and calculate decisions and investing your money on some tip is simply plain foolish.