Mistakes are not mistakes, that’s what my high school teacher used to say. But in investments, mistakes can be something very crucial that define the success of your investmen. Here are the five crucial mistakes in investment you should most definetly avoid at all cost.
Follow Fad Investing
Rich people do not get trapped in the current fads. For instance, when bitcoin becomes a trend. The cryptocurrency is launched in 2017. It has made the early investors become instant millionaires. Consequently, thousands of people jump in and try it.
Professionals may have the chance to generate money. Yet, the risks are too high for a beginner. The proof is it has fallen up to 70% in 2018. In summary, it is important to know what you want and stay on it.
‘Follow the herd’ mentality will only lead to great risks.
Don’t have a long-term plan
Rich people are always patient. They do not prioritize short-term returns. Rich people usually spend their time by sitting down and planning their savings over the next 20 years. They usually plan to create a generational wealth that can benefit their grandchildren, not only for themselves. For instance, they like to join clubs and organizations to build relationships that offset the fees.
This requires foresight, estate planning and also patience.
Panicking
Rich people do not panic since they invest for the long term. Besides, they also have alternative liquidity and financial resources to lean on.
Anxious investors receive anxiety. Contrarily, optimistic people tend to experience more positive outcomes.
Now, let’s avoid these 5 investment mistakes.
