Top 10 Beginner Investment Mistakes: Don’t Lose Big Time

Share on facebook
Share on twitter
Share on pinterest
Share on email
investment mistakes

There are a lot of investment options as of the moment as the internet has boosted people’s means of access to stocks, currencies, and much more. However, there are still a lot of common investments being made especially by the newer more impatient investor. Make sure to avoid these investment mistakes.

 

investment mistakes
Image from Pxhere

These mistakes aren’t just made by beginner investors but also some long-time investors as well.

 

What are the common mistakes made by investors?

1. Too risky too soon

Although you might be eager to start investing in something big like real estate, only move along with what you can afford. Instead of winning big, you might end up losing everything.

 

2. Investing everything

Going all in is very dangerous especially for beginner investors. This could easily be one of the most popular investment mistakes ever.

 

3. Not having options

Make sure you have options in your investments. Never put all your eggs in one basket. Diversify just in case something happens.

 

4. No backup plan

Always have a backup plan whether it be a degree, a skill, or an alternative should your investment not work out.

 

5. Looking at the bright side too much

When listening to a business pitch, they almost always just tell you the bright side, it is important to acknowledge that this is not always the case.

 

6. No savings

Make sure you have savings ready for a rainy day should your investment either need more or should it go bad and you would be left with nothing.

 

7. Being impatient

“Now or never” is usually a phrase to lure in beginner investors. This is one of the most dangerous investment mistakes. The right opportunity will come at the right time.

 

8. Thinking “this is it” on every opportunity

Never expect too much from a single opportunity. Don’t daydream about how you’ll spend the money you “might” earn.

 

9. Put too much trust in a friend

It’s easy to trust a friend but it’s hard to retain that trust after a failed investment.

 

10. Never invest something you aren’t willing to lose (risky investments)

Make sure when you are entering uncharted territory, invest money you are willing to lose. Don’t borrow money for a risky investment.

 

How do you avoid losing money on investments?

There are traditional investments that grow over time like mutual funds or other investments that offer a fixed interest per year. This is the safest way to invest your money. However, your portfolio should be divided into safe, average, and aggressive.

 

Also check out: Top 10 College Student Investments: How to Start with Little

Share on facebook
Share on twitter
Share on pinterest
Share on email

Leave a Comment

Get

Your Top 10's

Subscribe to our newsletter to be the first to read our new top 10 lists. We’re always creating engaging new content!