Why four mortal sins and not ten? Well, why not? Four is a nice number, and if I find the fifth deadly sin, I will not fail to inform you about this.
Buying on rumors or recommendations
After hundreds and thousands of investment opportunities, it is difficult to choose the right ones. There is a lot of information circulating, and it is difficult to handle all the data. As a result, people tend to use shortcuts. For example, someone could tell you about wonderful, produced by the company XYZ, and you buy stocks of this company in the belief that the price of this company will grow. The net result is usually negative.
Does this mean that I should not trust anyone? Exactly! The person who recommends you something, or spread the rumor probably would not sign it if you lose money it will cover it.
Belief in "Money for Nothing"
Belief that there is something for nothing is widespread. Why is this so, I do not know. In the animal world analogy would be that a lion is sleeping in the shade of a big tree, and zebras are themselves before launching the lion and commits suicide. Occasionally, you might get a bit of luck, but only occasionally. How is this related to the belief invest? Information such as "You should buy this stock and that will make you rich" are probably just marketing tricks, and you should not consider such messages. There are a lot of preparations to make before you buy any investment. Therefore, it is necessary to invest your time and effort to purchase a good opportunity, and it is a general principle in life. More work means more money.
Not having an investment plan
This is an investment plan? It is your statement about what you expect and what you are willing to do to get there. For example, the expectation is of a desired amount in 20 years form now, and you are willing to invest $ 2500 per year. As for the other plans, after a certain period of time, you should investigate if there is a need to change it. Usually reduce your expectations and / or increase your activity to achieve the goals. Do not change your plan of frequency. For example, after one year, you will find that you can not invest $ 2500 per year, but $ 1750 per year. Of course, then you should change your plan. You should not change your plan before you try really, really hard to follow your investment plan.
Not tracking your investment plan
When adjusting the plan, it is an absolute necessity to follow your plan. If you react to a certain point and to do something that is not scheduled your predictions could be disappointed. What can you do then? You have no information if this plan works or not because you have changed. So you can start with less money.
But do not forget! There are many emotions in investment, and it is very easy to forget the rules. I happened to be "a victim of" rumors on several occasions. Interesting thing in this regard is that I do not know these rules, but I forgot when "excellent opportunity" appears. You must practice self discipline as much as possible . It's good for you in other areas of life.
Buying on rumors or recommendations
After hundreds and thousands of investment opportunities, it is difficult to choose the right ones. There is a lot of information circulating, and it is difficult to handle all the data. As a result, people tend to use shortcuts. For example, someone could tell you about wonderful, produced by the company XYZ, and you buy stocks of this company in the belief that the price of this company will grow. The net result is usually negative.
Does this mean that I should not trust anyone? Exactly! The person who recommends you something, or spread the rumor probably would not sign it if you lose money it will cover it.
Belief in "Money for Nothing"
Belief that there is something for nothing is widespread. Why is this so, I do not know. In the animal world analogy would be that a lion is sleeping in the shade of a big tree, and zebras are themselves before launching the lion and commits suicide. Occasionally, you might get a bit of luck, but only occasionally. How is this related to the belief invest? Information such as "You should buy this stock and that will make you rich" are probably just marketing tricks, and you should not consider such messages. There are a lot of preparations to make before you buy any investment. Therefore, it is necessary to invest your time and effort to purchase a good opportunity, and it is a general principle in life. More work means more money.
Not having an investment plan
This is an investment plan? It is your statement about what you expect and what you are willing to do to get there. For example, the expectation is of a desired amount in 20 years form now, and you are willing to invest $ 2500 per year. As for the other plans, after a certain period of time, you should investigate if there is a need to change it. Usually reduce your expectations and / or increase your activity to achieve the goals. Do not change your plan of frequency. For example, after one year, you will find that you can not invest $ 2500 per year, but $ 1750 per year. Of course, then you should change your plan. You should not change your plan before you try really, really hard to follow your investment plan.
Not tracking your investment plan
When adjusting the plan, it is an absolute necessity to follow your plan. If you react to a certain point and to do something that is not scheduled your predictions could be disappointed. What can you do then? You have no information if this plan works or not because you have changed. So you can start with less money.
But do not forget! There are many emotions in investment, and it is very easy to forget the rules. I happened to be "a victim of" rumors on several occasions. Interesting thing in this regard is that I do not know these rules, but I forgot when "excellent opportunity" appears. You must practice self discipline as much as possible . It's good for you in other areas of life.
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