I honestly covet for those people who author health and lifestyle write-ups and compilations. Unlike I who authors finance and investing books, they can modify their advices so people can buy varied and multiple books every now and then.
Books about the best lifestyle habits tend to be flexible but good advices about investing remain the same over time.
Those strategies that make you richer are already what the readers expect in my recent published book. What make it fresh and surprising are the bad habits an investor does that can break his overall advantage in portfolio investing. Expectations and realities do not often match.
Avoid Having an Expensive Taste
The best sole advice that I can offer to anyone reading this is not to have an expensive taste and not to be too aggressive on your investments. In other words, do not count the eggs until they are hatched. Do not overanalyze. Do not overestimate. It is an unusual advice but it is very applicable to everyone. Often times, the smart ones are the very people who tend to fail. There is an error that is often committed by over-analyzers; they have the illusion that they are in control. Ironically, based on facts, they are the ones with a higher tendency to fail.
Avoid Looking at Short Term Gratifications
Always remember that in life, there is no shortcut to success and everyone is required to take the stairs. In other words, you win gradually, in small doses. There is no instant concoction that would turn anyone into a millionaire overnight, or even for a few months. Good investment returns will not be obvious in short run perspective, according to International Finance News. Invest in a security or an asset that has a modest but not paltry rate of return.
Avoid Mimicking What Other Investors Do
A lot of people become dependent on some investors they know who brag about having heaps and heaps of interest incomes and gains from sale of their securities. When you listen and believe them readily, you are in for a downfall. Investing in securities and portfolios are a case to case basis; it is personal. Copying what others do is not going to make your portfolio any more attractive and secure. You should be comfortable with what you invest in. There are different attitudes when it comes to investing: there are people who are risk tolerant while others are risk averse. You try to translate that to your manner of investing.
Avoid Overanalyzing Everything
You wake up one fine morning and saw in the newspaper that the value of the stocks that you just bought drastically dropped? Heads up, it is not the end of the world. Be aware that investments are volatile. That is the reason why you earn interest income at the first place. Risks are always involved in investing so do not trade and trade and trade for every time you see a decline in your securities.
Do Not Depend on Pure Luck; Develop Skill Instead.
The former is to be optimistic while the latter is to be realistic. Do not mistake luck for skill, do not consider skill as luck. Both are different and it is always better to have skill rather than pure luck. Luck does not give you any concrete advantage compared to others. Information in the markets is not absolute. Between two parties, one always has the advantage of knowing more that the other party. As a result, people get deceived, according to Google News Finance.
Do Not Always Believe in the So-Called ‘Financial Experts’
When you hear a huge company investing in this kind of stocks, you are more likely to treat them as experts and hop in the financial wagon. Unfortunately, while being a free rider is always tempting, you should also consider the real score in the market. After all, maybe the companies have ulterior motives to purchase or invest in another entity. Ulterior motives that you know nothing about. It may do more harm than good in your decision making.
Do Not Always Expect Good and Positive Results
As what is previously stated, there is always a likelihood that your investment will not turn out the way you want it to be. Worse, you may be losing more than breakeven. Well, as an investor you should accept that reality. Otherwise, just withdraw your money, sell your securities, hoard your cash. That way you are not losing with all your liquidity. Or are you? Remember inflation.
Do Not Be Reluctant to Seek Credible Opinion
The last thing that you should do is to assume that you are an expert yourself. Always ask for second or third opinion.
In the end, you should have a heart in investing. You should be comfortable and open to whatever will happen to your hard-earned money, based on International Finance News.