For the past few years, 70% of my income has come from several investment portfolios I have invested in. I have seen beginner investors make the same investment mistakes I made while starting, and I would love to help out in this article.
Consistently I have made several investment mistakes like every other person out there. The difference is that I sit down to analyze the mistakes I made, while others chicken out because they lost money.
To keep your portfolio safe or hinder your assets growth, these are the common investment mistakes every beginner investor should avoid.
5 Common Investment Mistakes every Newbie Investor should Avoid;
Investing without saving
Most times I see people fork out every single dime in their account just to invest in a certain portfolio they see as “wonderful.” Then boom!!! When the going becomes bad, they are back to square 1, probably contemplating suicide or something close.
You must have a reserve that would sustain you should anything go wrong. This is one of the investment mistakes beginner investors should avoid because it wouldn’t end well. I have explained the difference between savings and investment, so you can do well to read it.
Indulging in HYIP programs
So you finally saw a certain investment program that offers you a ridiculous 50% interest rate for putting your money, then you go emptying your bank savings just to invest. You would end up getting your fingers burnt pretty badly because of that singular investment mistake. No secured investment portfolio would offer you such a huge interest rate.
HYIP programs like MMM, Bitcoin Generators, and all others are surely bound to fail – no offence. Even if you go for speculative programs like FOREX and stocks, there is no guaranteed winner. You might win millions now and become dead broke in the next few seconds.
Seeking popular opinion before investing
Trying to ask the whole world about their opinions before you invest, is one of the investment mistakes that you should avoid as a newbie investor. After carrying out the SWOT analysis of any new investment package and you feel it is the goldmine, just go for it.
I will tell you for free that people are emotionally tied down when it comes to investing money, so they would always discourage others. Asking your friends, parents, colleagues, and church members if you should invest in any portfolio is wrong. They will end up discouraging you and your income will never grow.
As long as you follow the basics of investing, you would never commit an error. In a post, I listed out some of the best-secured investments in Nigeria, where you would never record any loss.
Most times people invest because they have an urgent need for money; they forget some basic commandments in investing and go ahead with the short-term thinking. They want their ROI as fast as possible because they have urgent money needs to solve. This isn’t how investing works and any shortcut would see you making investment mistakes that would hurt you both in the short and long term.
It isn’t outrightly bad to invest for the short term alone, but your portfolio should include a couple of long-term plans also. Your long-term plans could include money for building projects, university fees for your kids, your wedding, and any other thing that would happen in the future. You should know that most short-term portfolios often come with a low-interest rate (I mean secured investments), while long terms come with juicy interest rates.
So while you think of investing, you should consider both the long-term and short-term investment portfolios.
There are other several investment mistakes that newbie investors make which are not limited to the ones listed above. I suggest you take time and speak to a financial advisor or you drop your question as a comment using the comment section. I will gladly reply to all of them and answer all the questions.
Which other investment mistakes do you think that most people commit when they start off as investors?
Now you can just subscribe for more investment opportunities by inserting your name and email below…
Latest posts by Obinwanne Umunna (see all)
- Top Most Beautiful Female Runners of All Time - December 30, 2019
- Unpopular Small Business Ideas in Lagos – Low Capital - December 16, 2019
- Carmat.ng Review: Is this a Good Website to Buy and Sell Cars in Nigeria? - December 14, 2019