The 7 Dumbest mistakes you can make when investing

Try to avoid these 7 dumbest mistakes you can make when investing at all costs

If you're new to investing or Trading the Financial markets, you can be forgiven for making a few rookie mistakes along the way. If your financial knowledge isn't too hot, here's a heads-up of the 7 Dumbest mistakes that amateur investors usually fall into: you can save yourself some money if you

avoid them.

1. Don't sell in a panic

Easily one of the most common mistakes new investors make is getting cold feet and selling only days, weeks, or months after making an investment because prices have taken a dip. Newsflash: short-term dips and losses are inevitable. Don't let fear guide you.


2. Be flexible

Other investors feel they must hold the stocks they've set their mind upon, even if all reason is clearly telling them to sell. Holding through short-term losses is an important skill, but so is being prepared to sell earlier than expected.

People also read: Read this and start becoming wealthier today


3. Don't put all your eggs in one basket


Even with a relatively small amount of money, you shouldn't put it all on one horse. Try to round out your portfolio with investments in a few different industries and geographic locations.


4. Don't over diversify

Assuming you're not managing a fund, you probably also don't need to be investing in hundreds of different stocks. It is possible to spread yourself too thinly, which means that when one of your investments does do well, you're not going to reap much of a reward.

Don't miss: How to make your net worth $8 Billion


5. Keep your expectations in check

Remember that money made on investments is essentially money for doing nothing - if you're just starting out, any profit should really be accepted gratefully. Don't get impatient because your investments aren't seeing huge gains each month.


6. Consider your own investment timeframe

The type of assets you invest in should differ massively based on how long you're happy to keep your money invested for. Bonds and fixed-income investments are better in the short-term, whereas stocks and equity funds should only be considered for long-term investors.

Read now: Why litecoin could make you a millionaire in 2018


7. Past success is not proof of future success

Found a stock that's grown by 200% in the past year? Don't count on it doing the same again. You could be making the mistake of 'buying high' and having to sell low. Remember that successful trading is about the future, not the past.

Do you want to learn to trade like a pro? Stay ahead of the curve and read our expert articles and advice columns which will tell you everything you need to know about trading and investing.


If you enjoyed reading this article from Trading Education please give it a like and share with anyone else you think it may be of interest too.


Next Up: 4 Awesome Tips for quitting bad money habits

We'd love to hear from you!

Please share your comments or any suggestions on this article below

more from Forex Trading Articles...

Trading-Education Staff
Once upon a time, it might have been possible to make a bit of money using a savings account for a rainy day, your kids, retirement, or maybe that...
Trading-Education Staff
We all know that the forex market (also known as the Foreign Exchange Market or simply FX) is the most liquid financial market in the world. This...
Trading-Education Staff
The short answer to that burning question is: ‘Yes, you certainly can make money trading Forex’. But you didn’t come here just for...
Trading-Education Staff
The global forex market is simply huge and sees many trillions of dollars traded on it each day. The great news now is that, with the right...
Trading-Education Staff
Learning how to trade in the Foreign Exchange Market (also known as Forex) can be quite the formidable task, especially if you’re a beginner....
Trading-Education Staff
So you are interested in learning how to trade? You are not alone, there are thousands of people just like you so the Forex market must be doing...