There’s an old saying that goes something like this: “experience is the best teacher”. In some sense this is true, because plenty of people don’t learn unless they learn it the hard way. An example would be a boy thinking that he can make it big in the boxing world by learning everything about it. After studying everything needed to know about the sport, he enters a local boxing tournament, only to have his face beaten black and blue – why? Coz the chump had no prior ring experience. After having made a mistake, it’s important that you do everything you can to learn from it, and make sure that it doesn’t happen again.
Same concept goes with investing, a classic example would be this: a man puts invest his money in a particular stock that’s doesn’t move well. He keeps pooling his money into it because he “feels” that things will eventually turn. Being a newcomer to this type of biz, he doesn’t know anything and has no experience, which would have told him that isn’t the type of investment he should be pouring his cash into. Today I’m going to share with you a piece of investing advice that’ll help you avoid financial ruin. Here it is: by avoid the big mistakes made by other investors.
That simple piece of investing doesn’t sound like much, but it does mean a lot – it means everything. Moving forward, the first investing mistake made by many is committing at the wrong time. They usually make the fault of not grabbing the opportunities that run their way. They usually put them off, and in the end realize that they just threw away a fortune. Too bad, there ain’t anything they can do to turn back time, like Superman did in one of his movies. The 2nd mistake that’s made by a whole lot of chumps is not selecting their investments with care.
They tend to pool too much money into something that isn’t working, or let go too soon because of a minor fluctuation. They don’t know that it’s completely normal, and it’s the way the capital market ticks. The 3rd mistake plenty morons make is going to the stock market with no money. With no cash to compensate failures that are EXPECTED to happen, how do you expect to continue playing the game and make a profit? It’s like freaking going to war without any firepower! The end result of doing any of the two is the same, which is: mug hangs himself.
So do yourself a favor settle all the debts you’ve got, and come play the game when you’re stable and got enough capital. 4th fault is not spreading your investments. Playing this kinda game needs you to invest smart. Going with gut feeling will get you killed here. There’s another saying that goes like this: “no risk, no reward”. I can’t make a list of the people that took that way too literally – they usually end up losing a bundle of dough. True that taking a risk is part of everything, but it has to be “planed out” carefully, or in other words, is a calculated risk.
To ensure your survival in the jungle, follow the investing advice stated here by avoiding these particular mistakes. Play things real smart and financial freedom will soon be within your grasp.
The author of this article Rick Goldfeller is an underground Financial Analyst who has been successfully running campaigns for several wealthy clients. Rick finally decided to go public and share his knowledge and experience through his website finanzine.com. You can sign up for his free newsletter and join his coaching program.