You may make a few investing blunders along the way, but there are major errors you must avoid if you wish to be a successful investor. For instance, not investing at all or delaying investment is the greatest investment mistake that one can make. Make your money work for you, even if you can just invest $20 per week.
In addition to not investing at all or delaying investing until later, investing before you have the financial means to do so is a major error. First, rectify your current financial status, and then begin investing. Clean up your credit, pay off high-interest loans and credit cards, and save at least three months’ worth of living expenses. Once this is accomplished, you are prepared to put your money to work for you.
Do not invest to become wealthy quickly. This is the most dangerous form of investment, and you will almost certainly lose. If it were simple, everyone would do it! Rather, invest for the long term and have the fortitude to ride out the storms while your money grows. Invest for the short term only if you know you will need the funds within a short period of time; otherwise, stick to secure assets such as certificates of deposit.
Do not place all your eggs in a single basket. Spread it across numerous types of assets for optimal results. Also, avoid moving your money around excessively. Let it ride. Choose your investments with caution, invest your money, and let it to develop – do not worry if a stock falls a few dollars. If the stock is stable, it will increase again.
Many individuals erroneously believe that their investments in collectibles will actually pay them. If this were true, everyone would perform this action. Do not rely on your collection of Coke bottles or books to fund your retirement! Rather, rely on investments made with cold hard cash.