Investment Mistakes | Is IT Avoidable

Recently, investment has become the new gold, although I believe it was always gold but people didn't quite understand their way around it. Now everyone knows and everyone is digging for their share of the gold and while others are breaking the banks some are actually worse than they ever were. Its not like the universe is playing tricks on you or any weird illusion you had but the fact that you don't really understand how investment works. There are different types of investment, from shares to bonds to mutual funds and other kinds. Finding the investment game you can roll and ball with is actually very crucial in making profits.

A lot of people jump into different investments without any prior knowledge or understanding on what it really is about. If you want to go into buying shares then read about it, do your research and read all you can lay your hands on about it. Don't just go into a business because your intuition tells you to. Gather knowledge, seek counsel from people already involved in that type of investment. The books can open the map but practical experiences will guide you even better, no one is really an island of knowledge. It doesn't just take lots of money and guts but a deep understanding of the field and how to play.

Another mistake a lot of investors make is putting all their eggs in a basket. Very bad idea because investments are all about risk taking and putting all your money in one basket work two ways for you. You either go red or go green and with investment no one has the magic wand to make everything work in your favor and so the probability of you hitting rock bottom is as high as the probability of you hitting the jackpot.

Out of fear of potential risks a lot of investors invest so little. Although on one end it seems smart and makes sense but on the other end it actually doesn't. With investment a substantial amount is needed to make meaningful amount of profit and you just have to be ready to take risks and I mean huge or the investment game is not really for you. Perhaps going into less risky investments would put your mind at rest like real estate which is pretty much safe unless a tsunami or an earthquake comes along.

Another important mistake to avoid is being impatient or greedy. Investors in an attempt to go green so fast run ahead of the trend and end up loosing everything. In investments you must not be greedy in anyway except the positive kind of greedy but calm and patient, keeping up with the trend and paying close attention to it. Markets shift, currencies crash and rise and you don't want to be caught up in that and so you have to be patient. That's why I would recommend using money that if you lost due to bad market you won't have an heart attack. In investments you loose some and you win some so you have to be ready and prepared mentally for that.

Whatever kind of investments you go into make sure you don't make any of the mistakes I explained above and make sure you ready for whatever storm it throws. Don't fall for marketing hypes because those are strategies to draw more people in and off course keep your emotions out of the game.