Guest article written by Kevin Craig
“Yesterday I dared to struggle. Today I dare to win” is the key phrase for all the investors who have made mistake but it has helped to build a strong foundation for future investment. If you are nascent in the field of investment then you need to keep the following things in mind:
Crucial mistakes that an investor makes:
1) Lack of planning:
If you have proper planning then there are lesser chances of making mistake that might take a toll on your pocket. Prepare a personal investment plan that has the following updates:
Aims and objectives – You need to know what you are planning to achieve. Each investment plan has a different purpose and method of investment. For instance investment in retirement plan would be different from the investment in educational plan. So the investor needs to plan strategically in order to reap a good profit.
Asset distribution – Your total portfolio need to be well distributed among U.S. equities, international stocks, U.S. bonds, high-yield bonds, etc. Your asset distribution should help to acquire your goal as well as address relevant risks.
2) No risk in the investment:
If you have unrealistic expectations that your investment plans have no flaw and do not have a risk factor then you are suffering from severe misconception. The investment plans have huge amount of risk factors. If you disregard these factors then your evaluation of the plan is wrong and that might lead to serious trouble.
3) Try to look for investment plan as per your need:
If you are saving for retirement then you need to focus on future investment plan. You might enter retirement at age of 70; at this point of time you need to concentrate on investing to have a financially secured future for next 15 to 20 years. You need an investment plan according to your requirement. Therefore look for a short term investment plan that would help to save for your daughter’s college education when she is still in high school.
4) Acquire more knowledge before hand:
Try to acquire more information on the investment plan, associated risks, and reliability of the brokers as well as of the company administrators. Read newsletter on finance and investment so that you get a clear perception of the investment market. If you follow the financial news then you would be able to read the nerves of the fluctuating market.
5) Diversification of investment portfolio:
The entire investment a person has made is also known as investment portfolio. The diversification would help the investors to cover for the losses after investing in some companies. A portfolio would be distributed in a design of a pyramid. A hefty amount of investment would be done in companies with low risk and high security like governmental bonds. As the risk increases the number of investments would decrease. Percentage of the portfolio would be considered to be poor if the investments are done in risky companies.
6) Not consulting an advisor:
The needs and risk tolerance varies from individual to individual. These two elements are unique for each case. It is advisable to analyze your financial situation and then go for an investment plan. Try to avoid the tips given by any novice in the investment field. It would be advisable to consult a financial advisor if you want an effective advice on investment plans.
7) Not selling the stock on time:
Many people fail to judge the right time to sell the shares and stocks and this is considered to be an unpardonable mistake. The investors often fail to read the fluctuating market and cannot analyze when the stock price is really going down. Many people don’t want to sell their stocks during the “bull market”. These cases make the situation worse and people often run at huge loss.
These are the following mistakes that an investor make therefore revise your mistakes so that you do not face financial hardship. Make your future well secured by making your investment plan successful.
About the author:
Kevin Craig is a financial advisor. He has helped many people with debt settlement advices.
Posted in 
Tags:
Sweet internet site , super pattern , real clean and utilise pleasant.