What are the big mistakes investors make?

errors

In equities, you do not always win, but, as is completely logical, they also produce losses in the operations carried out. In good part of the occasions as a product of bad luck. But also in a very important percentage as a result of the mistakes you can make in the financial markets. Where they are sometimes due to bulk errors derived from your investment strategies. It is precisely these losses that can be avoided if you identify in what things have you been wrong. It is the best way to prevent these situations from happening again from now on.

Errors in the stock market are logical that they can happen, but in the same way they can be avoided. Or at least put all the tools to make these small or big mistakes happen again in your decisions in the equity markets. Because in effect, it can be a significant drag on your checking account balance. Especially when they are developed more frequently and unfortunately for these unfortunate investors. It is one of the worst scenarios that can happen to you in equities. Do you really want this not to happen to you?

It may be one of the most innocent mistakes that has caused you this bad news and that has generated that you have had to sell your shares with a loss level in your current account statement. The best way to avoid repeating these kinds of mistakes is to recognize them and learn these unwanted actions for your interests as a small and medium investor. It will be a little learning process You must go through it from now on. You will not have another more satisfactory solution.

Errors: not planning investments

plan

There is no doubt that this action will have been the trigger for some other bad operation in the equity markets. Because in effect, you may not know what your starting level is or even something but how it is not to determine what is the term of stay where your stock market operations should be directed. Or something as simple as not knowing the reality of the values ​​that have determined your purchases. Not in vain, you cannot forget that what it is about is to generate a balance between resources and needs over time.

Not planning investments is one of the big mistakes more frequent among any investor profile. Not only can they make you lose money in operations, but they can also make you vary the terms of permanence. For this reason, it is very important that you set goals for yourself and use a correct strategy to carry them out without much difficulty. Of course, any lack of definition of your bets on the stock market will lead to really unwanted situations.

Take no risks

How many opportunities have you lost by not taking more or less controlled risks? You cannot forget at any time that we are talking about the stock market and this implies a greater risk level than through other financial products. In this sense, you must be consistent with your line of action to achieve your main objectives. In the current investment context, the only alternative to improve profitability is by opening yourself up to the risks generated by equities. It is the condition for your checking account balance to be more buoyant every year. You will not have other resources, not even in the savings models from fixed income.

Also, you cannot forget that even if you are a moderate investor, you may be in a position to assume a certain volatility. With no other goal than to achieve a superior profitability to which they offer you other financial proposals. In any case, it must be supported by the profile you present as a small and medium investor. In any case, if you want to preserve your savings more efficiently and safely, mutual funds have become the meeting point between the most conservative and the most aggressive investors. You can look for a middle ground between both interests.

You can't be impatient

impatient

One of the biggest enemies of investors is his impatience. To the point that it can ruin all your expectations. It is not surprising that many of these users have developed bad operations during their dealings with the world of money. And that if they had waited a little longer they could have achieved generous benefits in their income statement. Knowing how to wait is one of the most valued qualities in any stock market user profile. As you will surely know through some of your operations in the equity markets.

Not surprisingly, one of the biggest flaws is trying to get the maximum returns in a short space of time. Without taking into account another series of very relevant considerations to achieve the goals in the financial markets. For everything to develop correctly, you will have no other solution than be very disciplined and faithfully follow the risk criteria. And if it could be, also set yourself some minimum goals from the beginning. But it's never a good idea to try to be a millionaire overnight. The rush is not a good ally to protect your positions in the stock market. Things almost always go wrong, as you may have seen from past performances.

Not diversifying investments

Of course, another serious mistake you can make is not diversifying your savings. Or what is the same, allocate it unique and exclusively to a single security or financial asset. It is not the best of strategies to defend your interests, quite the opposite. To the point that investing all your savings in a single investment model is one of the worst strategies you can develop from now on. You will have no choice but to correct this operational incident.

A very effective idea to combat this serious investment problem is based on opting for multi-asset funds. Not surprisingly, its managers are in a position to distribute the investment with great flexibility. And most importantly, in any class of financial assets. To the point that it will allow you to take advantage of the movements of the markets. Even in the most adverse scenarios for the financial markets. It is something that you will have happened with some frequency that you do not know what to do with your savings when the bags begin to plummet and they invite you to leave the markets.

Do not be advised

tips

Being self-sufficient in the stock market can cause you to lose a lot of money in the operations carried out. From time to time, at least, you should be receptive to the opinions of those who know how investments are developed and who know which financial products are the best. adapted to your real needs. Therefore, if you are not an expert, it is advisable to be advised by an investment professional. It will be a very simple way to protect your assets. But in any case, they must be independent professionals and away from any commercial interest or dependence on certain firms or business brands.

This action is frankly valid when your financial knowledge is not very extensive. Because at the end of the day, you will be the one who finally has to make the decision about what to do. In addition, it is a service that you can carry out through your usual bank. Completely free of charge and that you can access at any time and without the need to hire any kind of services. It is a strategy that you will always have on hand in case your contribution is necessary.

Being too immobile

Many times an excess of conservatism can harm you in your operations in equities. It is convenient to go to the best financial products at all times and they are not always the same. For everything to develop correctly, you will have no other solution than to be very aware of the evolution of the international economy. So that in this way, you can invest your assets more effectively. In many cases, even you will need to change your strategy or portfolio. You have to be open to all the business opportunities that come your way from now on.

You don't have to always invest in the same financial products. Not surprisingly, it can be very detrimental to your personal interests. Because financial markets are very flexible and they change every day. What is good for today may not be good for tomorrow. You have to be very active in looking for new models to develop new investment strategies.

Certainly there will be a series of financial products that you have never heard of and it may be very favorable to hire at this time. Well, all this happens because you may be excessively immobile in your relationships with the world of money. In any case, you are always in time to change this very conservative profile that you present to carry out your operations in the financial markets. Because indeed, many euros are at stake. And you cannot forget that your most immediate objective is to make all your savings profitable. Above other strategic considerations.


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  1.   moneyman said

    So you are going to invest in the stock market.
    What kind of person you are? Are you a risk taker, willing to throw money away with the opportunity to make a lot of money, or do you prefer something more "safe"? What would your likely response be to a 10% drop in a single stock in one day or a 35% drop over the course of a few weeks? Would you sell it all in a panic?

    The answers to these and similar questions will lead you to consider different types of equity investments, such as index or mutual funds versus individual stocks. If you are not naturally a risk taker, and are uncomfortable doing so but still want to invest in stocks, the best bet for you might be mutual funds or index funds. This is because they are well diversified and contain many different stocks. This reduces risk - and does not require individual stock research.

    Just wish you luck on your way to financial independence.