Starting to Invest in a business is not easy, but it is a good step to grow your economy. However, there will always be a risk, regardless of the type of investment that you have decided to choose.
The key is to fully understand all this, to be informed. Knowing elementary concepts thoroughly is important for success.
Keeping informed with concepts is not enough, you must be willing to lose in case it does not work. This article aims to warn about the most common mistakes among investment novices.
Mistakes when starting to invest
Before you start to invest or if you are already in the investment world make sure you have not done any of these moves.
1. Do not count on a plan when investing
Investments should also have a goal, making your money grow without a goal does not make sense. Besides the investments are made in the long term, take this into account as you will need a lot of patience.
2. Acquire actions that are on the rise
Before you decide to invest, make an analysis. People often get carried away by acquiring titles that perform better, which is not always the best option.
3. Invest all your money into one type of action
The success of the investment is to diversify your investments or as a phrase says “Do not put all the eggs in the same basket” So if you lose in some of the investments you have the opportunity to win in another and not lose everything at once.
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4. Not knowing exactly what you are investing
Whatever your decision when investing you should take the time to research exactly what your money is going to go. The name of the company, by whom it is directed, main activity, etc. You should invest in something that you have the ability to explain.
5. Based on recommendations for the purchase of shares
When inquiring about what to invest and when it must be through veridical documents. The recommendations of your friend or relative are not enough to decide to invest all your money in it. What one person works on may be the opposite.
6. Review investments daily
It is well to be aware, but values are constantly changing, it is not worth checking the changes every day. This alone will cause concern. Plan to review it continuously but not followed, for example, every 15 days or every month.
7. Do not count on emergency fund
Remember that there is always the risk in investments, and therefore you must have solvency in case there is a problem. Your emergency fund should be at least saving 6 times your monthly salary.
8. Do not put limits
The limits must be established in profits and also in losses, this to know when to buy or sell. This way you will have a cap when paying for certain actions.
9. Not having exit strategy
At some point, there may be the possibility of withdrawing from the investment and you must have a plan for it. Use different strategies like having a maximum of losses or gains.
10. Ignore commissions
The securities brokers have commissions by type of transactions, you must be informed of them. Trading through different channels has a lower commission.