The Five Most Common Investment Mistakes And How

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The Five Most Common Investment Mistakes And How
You Can Avoid Them
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• Investing your money wisely can help to secure
  your future. Poor investment decisions, on the
  other hand, can be catastrophic and interfere
  with your retirement plans. There are some common
  mistakes that many investors make and in this
  article well be exploring five of the worst
  mistakes you can make

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1. Too Much Short Term Investing

• No one can predict the short term movements of
  financial markets. The most successful investors
  are usually the ones who hold onto positions long
  term.

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2. Emotional Investing

• When you allow your emotions to dictate your
  trades, you are not thinking rationally. You may
  sell out of fear or hold onto something too long
  out of greed.

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3. Not Doing Your Research

• Whatever type of investment youre considering,
  get information from a reliable source. For
  example, if you are interested in bonds make sure
  you get some trustworthy bond investment
  recommendations before you invest. Many
  trustworthy, financial expert tips can be found
  online.

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4. Lack of Diversity

• Throwing all of your investment eggs into one
  basket is never a good idea. No single investment
  is a surefire winner, which is why its best to
  have a portfolio thats as diverse as possible.

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5. Throwing Good Money After Bad

• This is a variation of what is known as the
  Gamblers Fallacy -the belief that your winning
  hand (or number, horse, etc.) must come up sooner
  or later. With investments, this mentality causes
  people to hold onto a poor investment .

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