14 Investing Mistakes will wipe out your account

Doing investing is good but you have to know the pros and cons of anything so you get into that investment most people don’t know so I highly recommend you to stop doing it if you are one of them is already doing mistakes so let’s get into that.

Investing Mistakes 1: Money that you can afford the risk

If you are doing an investment listen to one thing there is a high probability that your returns will be increased so there is also a chance that might decrease also. I am not saying that stop doing investing, investing is good and investing is necessary but you should know the realistic approach there is a chance that you might lose your money if you had not done proper research proper analysis of that particular stock or maybe whatever you had invested your amount in that.

So I highly recommend you invest that much if any bad thing happens you have at least some amount for yourself so that you can leave your life so just don’t put all your hard-earned money in stocks for anything play the game smartly not blindly.

Investing Mistakes 2: Fear Of Missing Out on Investing

Well I know investing is important and I also recommend every person in the world should do investing whether it is in a big amount or small amount it is necessary to do investing but that doesn’t mean that if everybody is getting towards investing that you should also do the same.

Listen to doing something which you know and doing something which others are doing just the reason because you will miss out that what we call fear of missing out (FOMO) you can’t do. When you start knowing the day you can start investing.

Investing Mistakes 3: Waiting for the perfect time

Waiting for the perfect time if you are a beginner or you are advanced or experienced or an expert in the market doesn’t matter no one can time the market perfectly. I am saying again no one can time the market perfectly what I mean to say is that if you want to invest a particular amount in the market.

If you are thinking that you will catch the perfect time when the stock will go down and you will buy at less and sell at very much high price no you can’t do. If you want you can try and put your hands but if you are reading our blogs so I highly recommend you don’t do it okay so stick with your principal no one can perfectly catch the market.

Investing Mistakes 4: Emotional Investing

I think most of you do this but let me tell you if you are having a bad day whether it may be your positive emotion on negative emotion doesn’t matter I highly suggest not to do investing at that time the reason behind this is very simple.

We as a human tend to take wrong decision with emotions I am talking about the majority of the 99%, not the one percent who keeps himself or themselves calm throughout that emotions ok so I am talking about the majority of people so I highly suggest to not to do that okay keep your mind come and relax then do your Investment if you want and don’t do it in your emotions.

Investing Mistakes 5: Ignoring the inflation rate

Let’s say the inflation rate in a country like India is around 6%. Keep in mind that if you are investing in something you try to get at least more than 6-7% at least so that you beat the inflation rate trust me one of the primary reasons that we do investments is that investments have the potential to beat the inflation rate so that we can live our lives in a healthy manner.

Investing Mistakes 6: Investing without knowledge

Investing without knowledge is a serious crime you can’t do this crime, again and again, listen if you do things in a proper manner with the knowledge there is a high probability that you are going to get good output but if you make a mistake of investing without knowing the knowledge without knowing things that you should do or you should do not you are going to pay a good amount of fees indirectly or directly.

Investing Mistakes7: Investing in penny stocks

Investing in stocks is very dangerous. Penny stocks are something which is around rs 1 rs 2 etc or less than that also one can get around your low price that’s what so-called stocks are called penny stocks. So many people think that many people become billionaires by investing amounts in penny stocks.

But at the same time, they don’t think that with too high a return you have to take a high risk and there are high chances you might and then lose all your money in penny stock. So I must suggest if you are a beginner you should avoid that trap.

Investing Mistakes 8: Not doing asset allocation

Asset allocation is simply for having a balanced portfolio it helps to minimize risk and increase the return. If I would have to explain to you in a simple line then you should have to have a balanced portfolio that will be diversified. In simple words, you can’t put all eggs in one basket simply I hope I am loud and clear.

Investing Mistakes 9: Not understanding the power of compounding

Power of compounding trust me guys if you know the power of compounding and if you understand the game of the power of compounding I am pretty sure that you are not going to miss your investment you will start without wasting any second.

Investing Mistakes 10: Lack of patience

Listen I am going to tell you the secret the most successful person in any field has a strong level of patience that hardly anyone can match with him the reason is straightforward many people are having patience next 0 or you can say 0 If you want to make money from the market you have to have patience.

Investing Mistakes 11: Quick money-making mind

Investing helps to get returns over a period of time it can take years or sometimes it takes decades so you should understand investing is a slow and long-term process you can’t become rich or a millionaire overnight so stop thinking like that. Investing is a slow and long-term process you need to give time to the market so that market will return to you back.

Investing Mistakes12: Blindly following others

You can’t become rich or get good returns from the market if you follow anybody blindly and straightforward answer no need to explain, you all know what I am trying to say.

Investing Mistakes 13: Only focusing on return taxes

Listen we need to pay attention to Taxes I know I totally agree with you but I don’t agree with you if you only focus on the taxes of the return which you will get in the future understand what I am saying tax slab changes every year and if you are doing investing now and you will get the returns after 5 years let’s 7 years 8 year whatever around that time you don’t know what will be the next tax rate.

So how can you decide and conclude that you will get that much tax deduction after a so-and-so return? Doing the calculation is good but doing that much which can change will make your calculation spoil after that you will blame yourself.

Investing Mistakes 14: Not setting financial goals

Set your financial goals for whom you are doing investment for your upcoming generation for your child for any long-term goals whatever it can be you have to know that before investing.

So that you can stick to your goals if you don’t know why you want to achieve it’s hard to get and expecting the same result that you need in the future it will be hard. So try to understand first clear you’re why your goals are clear you are going to achieve if your goal is not clear you will go through bad times.

I hope you like the article comment below on which query you need the article I will try to make it out for you and don’t forget to share because sharing is caring thank you for reading the article.

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