INVESTMENT MISTAKES TO AVOID

No one wants financial loss. Taking risk is another thing and investing without knowing anything is another thing. However, everyone wants to grow their wealth and investing somewhere is an only option to increase their income. In the early stage, many people make mistakes while investing which lead to a financial loss. So, I'm going to highlight some points that I know personally, if you follow these, you can grow your wealth in right manners.

Here you go,

Image by Steve Buissinne from Pixabay

NO DIVERSIFICATION

Putting all of the eggs in one basket is not a wise decision. You need to avoid this mistake in order to avoid any financial loss. Instead, you have to diversify your portfolio in multiple strategies so that if one goes wrong others could be safe. You can invest in various available options such as real estate and stocks. There could be many other options near you that could fits your lifestyle so find them and invest in some of them in chunks. Add them into your portfolio and keep an eye after that.

INVESTING BASED ON EMOTIONS

Keep your emotions aside if you do really want to grow your portfolio. I would like to quote an example of cryptocurrency where if your fear or greed involved based on short-term market then you may end up loss for sure. Do not panic when market becomes high volatile. Be calm and stick to your investment plans. If you invest in lower prices then wait for the right time, in the same way, if you want to sell at higher prices then you should wait as per your plans rather than jumping into.

IGNORING FEES & EXPENSES

You should not ignore the fees and expenses while investing because it can easily gulp your money. It's very important to be aware with such expenses that are directly connected to your investment. In the starting, look for the low-cost investment options such as ETFs and index funds. Stop ignoring the fees and start looking at the low-cost options.

NOT REBALANCING YOUR PORTFOLIO

To manage risk and financial goals, you need to review your portfolio regularly in order to align. This is the only way that can help you to diversify your investment if you keep an eye on rebalancing the portfolio. Most of the time, people ignore for some time or even years that can lead to a financial loss. You need to adopt this reviewing strategy if you do really care for your portfolio growth.

TRYING TO TIME THE MARKET

Trying to get profit on short-term market is not a good way to grow your wealth. No one can predict this market so you might end up with a significant loss. If you want to achieve financial goals then try to focus on the long term investment to manage the risk factor very well. I myself on the long term investment mode. I quit focusing on short-term investment goals.

In the final thoughts, set your financial goals first then jump into investing in various available options to diversify it. You can easily meet to your financial goals by avoiding the above-mentioned mistakes. Hope all will go well.

*

Please follow @ikrahch if you like my content