Investors are often engaged in multiplying their money. They not only buy stocks and commodities but also deal with many investment areas. Investing is a vast field, and as you dive in, you will come to know the pros and cons of investing. However, a knowledgeable person may never deal with the cons. It is all about how much you learn by investing and how long you wish to survive in the market. Investors need to avoid certain mistakes.
There are two kinds of investors in the market:-
- Newcomers – Newcomers are those people who are new to the investing field.
- Old is gold – Old is gold are those people who have been investing in the market for many years. They are termed with the phrase ‘old is gold’ because the market considers them as genuine investors who transact daily in the marketplace.
5 Mistakes Investors Make Every Day
There are some common mistakes that an investor undertakes during his day to day investing needs. The five mistakes investors make every day are given below:
Impatience:
This is where most of the investors fail to perform. The grass looks greener to them, and they often fall into greed. Mel Lindauer said, ‘Investing is one of those rare places where people don’t like to buy on sale.’ People sometimes buy high and sell low. Why? The only reason for this is a lack of patience. The result of this is they lose their funds, which they invested in the sake of multiplying.
Sloth:
Sloth is basically dependant upon the thought that ‘why to do today what you can do tomorrow.’ When we talk about investing money for retirement needs, this should be done as soon as possible. The reason is, your money gets multiplied as soon as you start investing. Major investors ignore the facts and lose out on the gains a year before. They are not even averaging the price at which they are buying investments.
Gluttony:
‘If it is worth doing late, then it is should be done a lot.’ This helps to remind the investors as they keep on holding their investment plans. According to Tim, ‘Every time is the right time for investment.’ All you need to do is multiply your averages and decide where to invest.
Fear:
There’s always the fear of ‘Cash is King’. According to Dickson, ‘People think they are safe in cash, but in general, they are losing approx. 2% in cash’. This is not just a basic loss. Multiply it by the number of people, and you will come to know the real facts about GDP.
Negligence:
People often think that the money they have will take care of itself. Dickson says, ‘…the best way to plan your retirements is to plan it before your retirements.’ Investors often ignore the importance of time and investment, and they pay for the sin.
Conclusion
The five major mistakes should always be kept in mind before starting a journey of investing. The major mistakes in investing can give us a heavy loss. However, making decisions at the right time will surely help to save for the future.
