Monday, September 27, 2010

Top mistakes investors make

One way to have more money is not to lose what you already own, through bad investments. According to CFA institute, here are the fastest ways to lose money through investment: -

1. Buying investments without first establishing an investment strategy.

2. Investing in individual stocks instead of creating a diversified portfolio of securities.

3. Investing in stocks instead of in companies.

4. Buying high – performance chasing.

5. People sell low.

6. Unrealistic expectations.

7. Churning their investments.

8. Acting on tips and sound bites.

9. Pay too much in fees and commissions.

10. Engage in decision-making by tax avoidance.

11. Neglectful of their investment

12. Don’t know their real tolerance for risk.

If you are investing, make sure you do not make this common mistakes.

Source: Personal Money Tips

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