Avoid Common Investment Mistakes

Most people want to grow their money without paying enough attention to avoid common investment mistakes. Such mistakes cost you a lot.

According to research by CFA institute, here are 12 fastest ways to lose money through investment: -

1. Don’t know their real tolerance for risk
2. Investing without first establishing an investment strategy
3. Investing in individual stocks instead of creating a diversified portfolio of securities.
4. Investing in stocks instead of in companies.
5. Buying high – “performance chasing” – common when the markets is hot
6. People sell low or panic selling; common when the markets is slow
7. Having unrealistic expectations – I want 8 % in 6 months
8. Churning their investments i.e. not allowing sufficient time for the investments to grow
9. Acting on “tips”. This is all too common here
10. Pay too much in fees and commissions
11. Making decision based on tax avoidance
12. Failing to monitor and review their investment portfolio

Now that you know, check to see if you are making any of this common investment mistakes.

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