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| Ten Investment Pitfalls to Watch Out for Posted: 23 Feb 2011 07:30 AM PST Every person saves his money and later on invests the money in different areas. Some people buy property, some invest in banks ,stocks etc .By investing the money in different areas the investor can earn much more money comparing to the invested money. One has to be very vigilant that in what area he/she is investing and what is the future and scope of the business. If its going good than in future it will be beneficial if he invested in a poor business he can loss his money.
Investors can increase their assets by avoiding mistakes that are given below: Insufficient Income to Invest: Proper investment should be done by the investor to earn a proper profit. If a person run his/her house and doesn't have enough money to invest he/she shouldn't invest somewhere. For investment you must have a good amount of money which gives you more profits. Before investing to the money the investor should also be sure to give high interest on their credit cards etc. Not Enough Research for New Investments: Whenever a person is interested to do investment he/she should know where to invest. Ask advisers and do a lot of research where he/she wants to invest the money. You can get any information from the internet and do a research on it that will it be beneficial or you to invest. If you want to invest in a company check its financial data from the internet and do research and make a decision.
Buy at the Best time: persons interested to buy stocks he/she should buy at the best time. Best time means when the rate of the stock is minimum you should buy it .It will give you much profit in the end. Successful investors rely on the combination of research, planning and patience. If you do research you will always be on the right track and be patient whether you are having loss, one day you will get the profit.
No Clear Investment Strategy or Goals: Investment is like a journey, and it's the responsibility of the investor to choose an appropriate part it. You must know where you want to invest and in what things you want to invest. You also have to see the risks. Higher the risks higher will be return lower the risk will give you lower return .You also have to see what decision to take on what time. Not Sticking to Investment Goals: If you have invest in a business you should monitor where the business is going its ups and downs but you don't have to stick just on one business you should also take information from others about other investments and try to invest there also if u have sufficient money. Inexperienced or Inappropriate Adviser: An adviser is very important for doing any business and if the adviser is not up to the mark means don't have enough knowledge and skills ,your investment can go in reverse. Before taking an adviser you must see his/her experience and reputation. Lack of Portfolio Diversification: When ever you are investing don't invest whole of your money in one business. This is dangerous because if the business goes down in which u have invested all your money is gone .Their is a very high risk is involved in it .Good investors invests in different businesses so that if one goes down the other will benefit them. No Patience for Investment Growth: When you have invested in any business you must wait and see what the position of the business in market is. Mostly people invest and suddenly reinvests from that business because of a downfall in the business. If you buy stocks and they are giving you profit you should see and wait that it will increase and give you more profit. So wait and see what's going to happen and than take the decision. Not Enough Reinvestment: If you have earned profit from buying a stock. You should reinvest some of the money into that business again by doing that it will generate more profits for you and the reinvested earning can compound over time means it will give you more profit Neglecting IRA/401K: IRA/401K is an indispensable tool for some people who usually qualify for it .So the investor should be vigilant enough that he/she should not make a mistake to invest in these accounts. People who liked this Post also read
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