10 investment mistakes to avoid..

[Chicken_Biryani]

Re: 10 investment mistakes to avoid..

Enjoyed reading your input. Its definitely not from Stocks perspective. For example someone in the property business can relate to this very well.

@crabman

Your post mentions investment as heading whereas your content is I think specifically for stocks.
Ill add my comments referring to your post by points,

1. Agreed, same goes for everything else in life, its a general statement not particular to investment.
2. Partially agreed, buying a stock while its climbing is the way most people invest. Although shares are not cyclic but they do remain in a small band between yearly highs and lows, therefore buying at an established low and selling at established high is a good strategy (IMO).
3. Partially agreed, but you gotta keep refreshing your portfolio, today’s market is not long term, one political event or another keeps happening, market keeps changing so to stay fresh always have an exit strategy, both in-case of loss and profit. Usually people set both high and low targets and that works by preventing you from huge plummets. Keeping the stock long after it has made your target profit is foolish. A bird in hand is better than two in bush.
   Note: Warren Buffet is an anomaly, shouldn’t refer to him when talking about basics of investment.
4. Totally agreed, if considering stock, don’t buy all in one company, or all in one sector, or all in one market. It largely depends on your fund availability. Diversifying your risk by investing in property, Forex, and Commodities is the usual practice.
   5.Partially agreed. Depends on your investment appetite. Higher risks lead to higher gains, always go through the risk analysis of the particular instrument. Most analysis reports can be purchased from investment banking firms. Also do review the credit rating given to instrument by S&P and others.
5. Same point repeated, although cant be stressed enough diversify your risk.
6. Same as before
7. Its always better to have a portfolio manager/financial adviser. Trust professional opinion over your gut feeling. Pay a small fee usually 1% for their services
8. Depends on personal strategy. Short term investments keep you on your feet. In Long term risk always increases, strike a balance.
9. Totally agreed