Tuesday, March 6, 2012

7 mistakes to avoid when investing!

7 mistakes to avoid when investing!

- Confusing between trading and investing
Trading is something that you do without much planning or research that is you are said to be trading when you buy and sell stocks and mutual funds at will.
Investing takes a lot more research and well-thought planning in the different avenues of the investment.

- Taking a very conservative stand
A good investment is not only about guaranteed returns but about returns post inflation

- Taking a very aggressive stand
The middle path is always better so that you can always make changes to your investment basket according to market conditions.

- Holding on to the dud stocks
A dud stocks need not necessarily mean only non-performing stocks; it could also mean purchasing stocks of unheard companies.

- Asset allocation holds the key
Your investment basket should be filled with the right type of assets for good long term returns.

- Timing the market
Though there are some parameters to predict the market like the changes to the country’s socio, economic, political and business spectrums, there is no fixed rule to say how markets would react to these turn of events.

- Overconfidence
Ask the long term players in the markets and they will perhaps warn you against being overconfident with recent successes.

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