As a newbie in the investing world you will hear many people telling you what to do and where to invest, countless people may have countless opinions and some of them may even be contradictory. So what to do? We will tell you what not to do so that you can filter out the advice that will actually work for you.
Table of Content
Constantly Following The Market
You may be tempted to constantly time the market and keep a watchful eye on your investments. But this may not always be the best practice. There will be fluctuations in the market and monitoring them down to the minute will only make your heart go up and down with the fluctuations. Have a good knowledge of the economy and overall market performance.
Getting Advice On Social Media
There are numerous self proclaimed experts on social media, and some of them may actually be experts. However what works for one person may not always work for another. So blindly following and investing in what people say on social media. Listen to what people are saying, do your own research and see if the investment aligns with your goals.
Investing Money You May Need in Near Future
Investing your money instead of just saving it is important. However, investing all of your money may not be a wise decision. You need to have an emergency fund you can fall back on in case of need. Do not invest the money you might need for future payments because the market is volatile and you may find yourself in a fix without any emergency net to fall back on.
Not Diversifying
We have said it before and we will say it again! Diversification is the key to a successful portfolio. You can’t keep all your eggs in one basket. Diversification helps you cover the losses from one investment with the profits you make from the other.
Losing Patience
Many enter the market, make good profits, get excited, invest more without any research and make losses. This disheartens many and they exit the market. However, here you need to step back and analyze your mistakes. Firstly one should always put some research and analysis behind their investments. And secondly you didn’t give your investment time. If you are investing for the long term then short term losses should not deter you.
If you keep these points in mind and start your investment journey then you will be off to a great start! However in case of any help you always have Sqrrl to accompany you on your investment journey!
