Investing money is not something you want to take lightly. People who go in unprepared and not knowing a thing about the markets or different types of investments tend to lose their money quite fast. Today, we would like to share some tips on what you shouldn’t do when you start out with investing. These tips are also valid for seasoned investors who may forget the what-not-to-dos.
Don’t listen to just anyone – Lots of people have a lot to say about investments. Many of those people probably don’t know the first thing about it and they probably don’t have any investments of their own. You should be careful about whose advice you listen to. The guy at the pub with a few beers is probably not a good bet. A respected website like this one is a good bet.
Don’t buy shares without careful consideration – There is a sort of unspoken rule that says you should think about buying a share for about 30 minutes before clicking the button. This gives you enough time to research and weigh the pros and cons. You can’t un-buy a share. So, be sure that it is the right share for you before you buy.
Don’t invest money you need – You should never invest more money than you can afford to spend and lose. The money you invest should be extra and must not endanger your and your family’s ability to survive.
Don’t get spooked – News will update regularly and things will happen in the markets that may be unexpected. Don’t listen to everything on the news or other people freaking out. You know your investments and you should know when to stay and when to get out. Don’t allow mass media and unfounded stories spook you into doing stupid things.
Avoid these actions and you should be relatively stable with your investments. It is important to remember that there is no such thing as a sure thing when it comes to investments. Keep an open mind and learn as much as you can and always keep your goals in mind.