20 Deadly Investment Mistakes to Avoid
This article, “20 deadly investment mistakes“, guide the investors through the common, but most dangerous investing mistakes that investors commits always.
Warren Buffet once quoted,
“Wall Street is the only place that people ride to work in a Rolls Royce to get advice from those who take the subway“.
Those who understood the meaning of this great quote from the legend investor, would stop their investing activities immediately and start to acquire real knowledge and wisdom to become a successful investor.
Investment wisdom is not only acquiring necessary knowledge to make successful investment decisions, but also meant for learning and avoiding costly investment mistakes.
Buffett’s quote pointing fingers to the foolish investors who are really ignorant on what they are doing.
Here is the 20 deadly investment mistakes:
Let me ask,
“Do you have any history of money loss from stock market investing?” or
“Did you studied about all the common investment mistakes investors commit regularly while investing?”
If your answer is ‘YES’ to the first and “NO’ to the second, this article meant for you.
It is a well researched set of “20 common investment mistakes investors frequently commits” regardless the place where they are.
If you are suffering from investment loses in the past, here you will know the reason behind that and how to resolve that!
What are the 20 deadly investment mistakes?
Below are the complete list of 20 deadly investment mistakes investors should not commit!
Investment mistake 1
Start investing without self assessment on readiness and goals
Investment mistake 2
Thinking and approaching stock market with full of greed to become super rich overnight.
Investment mistake 3
Considering stock investment as a part time job or hobby or a place to test luck
Investment mistake 4
Starts without acquiring proper knowledge on investing, stock market, risk and returns
Investment mistake 5
Taking investment decisions with lack of knowledge on where, when, how much to invest
Investment mistake 6
Investments on company stocks without studying about their business, management, financial status
Investment mistake 7
Investment on companies with high debt, low or no Return on Equity, Negative Cash flow and operating in highly competitive sectors
Investment mistake 8
Follows the activities of public, fellow traders, colleagues, big investors
Investment mistake 9
Makes any investments on market rumors, analyst reports, hot tips, broker recommendations
Investment mistake 10
Entering to the stock market as a short term trader, intra-day trader, speculator
Investment mistake 11
Investments without proper study, research, references on the business economics, market time and risk-return possibility
Investment mistake 12
Not having necessary investor qualities of patience, prudence and having disadvantages like being panic on stock market volatility
Investment mistake 13
Less diversification by putting huge money to a or two businesses or over diversification by investing little money to number of stocks
Investment mistake 14
Investing on businesses that are unknown and/or investing on franchise model businesses, commodity businesses who have huge competitors, high debt and less or no returns
Investment mistake 15
Panic selling of a good stock in a down market or buying a bad stock in an up market, by greed
Investment mistake 16
Large investments on penny stocks and micro cap stocks
Investment mistake 17
Making investments with borrowed money as loan from banks, financial institutions or from friends and relatives
Investment mistake 18
Making investments relying on stock screener, charts, technical analysis data, candle sticks which doesn’t able to expose the real fundamentals of a company than its past trading information and volatility
Investment mistake 19
Not having proper knowledge on when to sell a good stock and when to throw a bad stock
Investment mistake 20
Finally, forgetting the truth of ‘start investments early’, but makes investments largely just before the retirement.
Conclusion:
Ensure to not commit any of the above mistakes while taking investment decisions. A must read in this blog, “Excellent guide to select and invest on best companies“, help investors to find the best companies by focusing various important selection factors!