The idea that you can make money through investing is awesome. Just the fact that you’ve got to the stage where you’re seriously considering this is awesome. You’re making enough money at work that you’re looking to find ways to make more money. All of this is awesome. However, it is not a simple game to play and, the fact of the matter is, you may end up losing your money if you’re not wise to some of the pitfalls. You don’t want your investment bubble to pop and leave you worse off than you started out. Well, to prevent this from happening, here are things should avoid doing. They are called mistakes.
Investing Takes Calculation.
There is a huge difference between investing and gambling. What do we mean by that? Well, if you’ve just signed up to a trading website and you’re randomly picking stocks to invest in, you are gambling. If you were on the train to work and you overheard someone mention a company they’re about to buy shares in, or a horse they’re going to put money on, you are gambling. Hot tips and lucky dips, don’t count as investing.
Always Do Your Research.
Only fools don’t do their research. So if you’re seriously thinking about investing in something, make sure you put in the hours. The internet offers a free education, so there is no excuse. Besides, don’t you want to know more about the product that has peaked your interest, or the company you quite like the idea of. Well, if so, check out their business plan or buy one of their products and try it out. Also, research the country you’re thinking of investing in. You don’t want to do hours and hours researching ‘property investment opportunities in Florida’ to then find out you haven’t meant the criteria to invest in America; all it takes is a brief conversation with an EB-5 green card investment attorney.
It’s A Waiting Game.
Have an endgame in mind; this will help provide you with a time frame. For instance, if you’re saving up for a house, put this in the medium duration column. If, you’re saving up for your unborn child’s education, put that in the long-term column.
Eggs. One Basket. No.
There is risk attached to all investments. That is a fact. Quite simply put, the more attractive the returns the more risky the investment. For this reason, please don’t put all your money into one company, or one product, or one anything. Spread the risk. You don’t want to expose yourself. You don’t want to lose all your money in one hand. It’s that simple.
Low Cost Doesn’t Mean Good.
Investment is not about finding the cheapest things to invest in, it is about finding the best value. For example, buy a ridiculously high-priced share in Apple would still be a better buy than your friends toffee-onion store, where he is selling shares for a penny. Got it.