Top Five Investing Mistakes
- Putting all your money in one place.
Don’t put all of your money in one type of investment. A mix helps even things out. If one loses, another may gain. Remember, some businesses have cycles. Some may do well in the summer, some in winter. Some will react to world events, some may not. If you spread them out, at least some of your investments will be doing well. If you put all your money in a single investment (no matter how promising it seems) and something happens to that investment, you could lose all your money.
- Investing in things you don’t understand.
Remember ‘dot coms’? They were the hot thing to invest in for a while. But many had no customers or profits. A lot of people didn’t understand what they were getting into and lost money on them.
- Not setting clear goals.
Are you saving for retirement? A house? A car? Will you need to use your money in five, ten or 25 years? You need to know these things before you invest.
- Taking chances you can’t live with.
If you invest in something that makes you lose sleep at night from worry, you’ve chosen the wrong thing. Don’t choose something that you need to watch every day. Smart people pick investments that are good for the longer term. And if
you’re going to take chances, make sure you only invest money you can afford to lose.
- Following hot tips or rumours.
What looks like great information may just be noise. Make sure you know and trust the source. If you’re looking for advice,
get it from an expert. That’s doing your homework.
Posted on September 9, 2011, in Uncategorized and tagged bank fraud, bank scams, financial fraud, financial scams, fraud prevention, Help, How to, investing, investing mistakes, investment fraud, investment scams, scam prevention. Bookmark the permalink. Leave a comment.