When it comes to investing, I think it is only wise to learn from those who have failed in this business aside from learning from those who succeeded. The cold heart truth is that not everyone gets it, so not everyone would make it. This world is not for the faint of hearts. We are talking about the core of almost what makes the world go round. It could be interpreted literally since money does go around and it has this cause and effect relationship with people. If you’re someone who wants to dive into investing whether it’s through stocks or real estate, you must know the things to avoid, so you won’t commit the same mistakes that others had.
I have narrowed down some of the don’ts that you must completely avoid and bookmark this if you must. This will come in handy one day when you finally decide to take investing seriously.
- Don’t Act Like A Fortune Teller Based On A Good Pattern: Never allow your current success to determine your future. I’m talking about the current good results in your investment like good stock rates and profit. This is one of the biggest mistakes an investor could make. It may sound funny, but this actually happens a lot! Investors would predict they are going to do well in the future because of what they did with their current success. Keep in mind that the market is never steady. And just because it worked today, doesn’t mean it would work again tomorrow. This scenario often happens in real estate investment. Most investors make that mistake of timing their investment as well, don’t ever do that.
- Don’t Assume Anything: Another huge mistake that investors are doing it wrong in this game is being overconfident. Most of them, especially the first timers get too excited, missing on important facts that would affect their investment later on. This is why it is best to have someone who is balanced about the whole thing and won’t just inject unrealistic positivity in the matter. Stay humble as well; don’t think that you have it all figured out, especially when you are just starting out. Always get an unbiased opinion because this is your best bet in this game.
- Don’t Forget To Be Keen About Details: Don’t easily accept offers because of the tempting benefits that a broker will tell you. It is a must that you do your own research and check if it is really going to be profitable for you. Some new investors are easily lured by promises and current success of a business opportunity or an asset and they give in to that too quickly. Failing to look at an asset’s expense ratio before purchasing it could actually lead to bankruptcy. So, keep in mind this last tip because it is crucial.
Now, that you know these 3 don’ts, make sure that you practice investing properly, so you won’t end up losing money in the end.