Simple Mistakes People Make When Investing Their Money
#1 Pursuing the Last Hot Thing
Sometimes a hot trend can go on for a long time...
There are no guarantees though.
You do not want to be that person "changing lanes" at the wrong time. It is not profitable.
#2 Relying on Tips
Following tips might work a few times...
But it does not work over the long term.
Relying on random tips is not an investment strategy.
You need a method to find investment ideas, not tips.
#3 Only Considering the Profit Potential
An investment must show good profit potential...
But there are other things to consider.
Sometimes the risk is just too high, or it would take a long time to realize the profit.
#4 Start Investing without a Plan
What would you do if something goes wrong?
When would you take the profits, or cut the losses?
Otherwise, you would be leaving too much to chance.
#5 Overestimate Own Risk Tolerance
People believe they can handle risk well... when they can not.
Whenever prices start falling, people panic because they took "too much risk" for their ability.
