If you’re new to investing, there are a lot of things that you need to learn, but the problem happens when you don’t do research and don’t head off potential mistakes that may happen. Here is a list of five mistakes that many first time investors make and why.
- Investing in only “safe” investments. This happened a lot during the recession, because people were afraid that we were going to fall into a depression and they were going to lose all of their hard earned money. Investing in only “safe” investments is a big mistake, because you could be missing out on a lot of interest and other perks that you can get.
- Not being able to take a loss and move forward. Psychologically, you have to be a strong person in order to invest well, and you have to be able to deal with it after taking a loss, sell the stock, learn from your error in judgment, and keep playing the investment game in order to get the results you want.
- Not doing your research. If you don’t do research on your stocks, you’ll start throwing your money places that you shouldn’t, and you could end up losing a lot of money. So be sure to keep up with all of the latest investment news and learn what you need to in order to make good decisions.
- Not keeping track of your investments after you make them. This is one of the biggest mistakes that people make when investing. It’s not like a roast; you can’t just “set it and forget it.” You have to keep up with market trends, check out what the company you invested in is doing, and watch how other companies in the same sector are faring. Otherwise, you could get in a situation where the stock should be sold, and you totally miss it.
- Hesitating in your selling of stock. This is another huge mistake that people make. If a stock skyrockets quickly, sometimes people hesitate in selling it, usually because they’re trying to hold out a little longer to see if they can make more money on it. What that usually results in is a loss, because they hold out too long and never sell it. Think about it- wouldn’t you rather miss out on earning a couple of dollars as opposed to losing a few because you didn’t make the right move?
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