Investing mistakes

How can we know that what we buy is not the right one?


How can we avoid buying the wrong share of stocks?





Ahhhh... Every books I read about investing have different approach some say buy when the stocks are bullish, some say buy when they are at their lowest price. Some books say diversify others say concentrate on one kind of stock which is appreaciating ohhh... its so confusing so its up to you to decide which is best for you.





Here are some pointers to avoid burn-out in investing:

1. Avoid emotionally in love with your stocks-if the stocks are losing sell don't be stubborn thinking that it will bounce in price right away. Avoid waiting and keep hoping until your loss gets bigger and costs you dearly. It was a mistake which I made few years ago, A friend encourage me to buy a stock since I don't know about stock investment before I just go and buy. I don't know that I bought it near its top after few weeks the stock keep sliding down, I decided to keep the stock hoping that it will bounce back, months and years pass but the stock remains on its low price. If only I sold it long time ago I should have bought other stocks that is a winner.

2. You should plan every purchase (see the blog about the rules I follow in investing) in order to guide you and can make a decision right away of what to do, do I have to buy, do I have to sell, or Do I have to hold onto my investment. It is easier for you to make up your mind and do what is right.

3. Avoid stocks that are not performing well-this is one of the causes that's why a lot of first time investors never get past the first hurdle. First of all you have to select or find a successful stock- make your own criteria in selecting what you think is a good stock. tip for you--look for real market leaders

4. Don't think that you can make a quick buck in investing, better yet go to a casino and gamble if that's the way you think. In investing you need to acquire the essential skills and have to spend some time in knowing what you are doing. You have to study the market, the sectors, the stocks you plan to acquire...it takes time you know.

5. Don't take unnecessary risks-invest only on what you can afford to lose, if they promise a very large amount of reward the bigger the risk and the percentage of losing all your money is higher. Don't speculate if you cannot afford to.

6. Avoid investing through hot tips, from investment rumors, tips from pretenders who know everything about the market. Invest in what you know and not in what they know.

7. Avoid pretending that you know everything there is a lot to learn about investing, even the expert are continually learning and researching.

8. Procrastination -we always here the saying "Time is gold" but a lot of people put off financial decisions because of so many alibi's like no time, no big savings, or they might do the wrong thing. Being ashamed to invest in small amount-with this attitude you'll never start in the world of investing.