Lack of knowledge about investment models, absence of a clear plan are often a common mistakes made by beginner investors. However, this is not an exhaustive list the main causes of investment losses and the lack of desire to move forward. In this article, we will examine the most common mistakes and misconceptions of beginner investors.
Lack of sufficient funds for the beginning investing activity
Money needs counting. Can you imagine how much money you spend on products, on utilities, entertainment every month? If not, begin to make at least an elementary account of the major expenses. This will allow you to more efficiently keep your budget and correctly calculate the amount that can be invested in projects.
The obsession with the idea of earning Much money
A man whose eyes light up when being offered 100% yield is likely to be a beginner. After all, experienced people know that investing in a project with a yield higher than that offered by banks is associated with the risk. The annual yield of 8% can be considered relatively safe. Anything higher will require either much work or a lot of nerves. Do not allow greed to nip your career of an online investor in the bud.
Do feelings overwhelm you? You cannot resist investing your money in an awesome project? At first, relax, count to ten, breathe deeply. Do not take decisions based on emotions, in our case the main is to weigh everything and calculate soberly.
Go for broke
Are all your funds kept in a single project? Very, very bad. It is a very silly and very common mistake that has ruined more than one life. Diversify investments, do not to play with fire.