Do You Want to Avoid the 3 Major Mistakes Stock Market Investors Make?

As in any other area of life and business, within the stock market and investing field there are all sorts of characters. There are brilliant men lacking the virtue of honesty, and very honest men lacking the advantage of intelligence.

We’ve seen investors be cheated, get confused, deceived, and plainly charmed.

We’ve seen a lot, and we have learned what works and what doesn’t serve you at all.

In this sense, there are 3 huge, but avoidable, mistakes that stock market investors make time after time:

1. They put too much money in one recommendation
As an investor, you have to limit each investment so that in the worst-case scenario, you never get hurt so badly that you won’t be able to move on.

2. They invest in something just because they like the story behind it
Ugh! Wake up! Look at Hollywood! A story, in nature, is designed to blow things out of proportion… to dramatize, never, ever to give rational information.

3. They leave money in an investment after it begins to fall
This is a tricky one, because when investing, you should never act in haste, and it is true that you should not run to get your money out of an investment just because it is losing value; however, you should really analyze each case individually.

There are fluctuations that are normal, but there are other instances where a business starts to fall and there’s nothing to stop it from continuing in that direction.

If you own a business and you invest in it, you know enough about it to attempt something unexpected to change the situation, but when talking about other people’s businesses, you can never control their success or failure.

The tricky part is to know when to get out to avoid being sorry later for having lost an important amount of money in an investment you knew, deep inside, had no future.

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