5 Mistakes That First-Time Investors Make
Can you imagine having enough money in your back pocket to be able to buy every single person in the world a Cherry Coke and a Cheese Burger? Warren Buffett can, but even he had to start somewhere. Whether you’re young or old, there’s always time to start investing. Unfortunately, it’s not the easiest thing in the world to understand, and many make poor decisions that result in negative profit. We know that this is definitely not ideal, so we’ve put together this guide of the five mistakes that investors most commonly make.
1. Starting too Late
Many prospective traders and investors know that they want to invest from a young age, but they never do. Instead, they leave it too late, and this means they’re wasting valuable time in which they could be building up their investment assets and therefore their profit. Starting early is clearly a priority if you want to make as much money as you can as quickly as you can.
2. Being Passive
Money doesn’t make its way into your bank account while you sleep. Instead, you have to go and actively seek it out. By being active in this way, you’ll ensure that you take every opportunity you can. This means:
- Talking to potential co-investors
- Watching the news to discover investment opportunities
- Engaging with the local community to see what service/product they require that you could create
- Nurturing your current investment projects so that you know they’re constantly at their best.
3. Investing in Something Easy; Not Something You Love
The best investments you will ever make will be in the areas of life you are passionate about. This is because if you’re not personally and emotionally invested in a certain idea or project, you won’t be able to complete your duties as the investor to the best of your abilities. If you’re passionate about interior décor, don’t invest in FX – invest in property.
4. Relying on Intuition; Not Informing Yourself Enough
A good investment is one that you’ll research and educate yourself on before you become financially invested in it. This can come in a number of different forms – from reading forums, to consumer and business advice from somewhere like the Citizens Advice Bureau to discussing ideas with practicing business professionals.
5. Using an Old Trading Platform
Gone are the days where you ring up your Forex broker and ask them to open and close positions. Instead, now the emphasis is very much on you to do your own work, which you do using an online trading platform such as Alpari’s ecn mt5. These platforms are regularly updated, and so new features are added on an annual basis. This means that it’s crucial to keep updating your trading platform. Without doing so, you’ll fall behind and you might lose your competitive edge.
Ultimately, all brilliant investors had to start somewhere, so avoid the above problems and learn from others’ mistakes. If you do, you’ll find yourself far better equipped for the job.