Common Investor Mistakes to Avoid

Look, we all make mistakes as investors, but some of them are worse than others. While some mistakes can cause only mild setbacks, others can lead to ruined portfolios, lots of lost money, and other big problems. Thus, it’s important to educate yourself on smart investing strategies, hopefully with the help of a professional financial advisor, and to recognize your potentially big blunders early on so you can fix them before they wreak serious havoc. To help you do just that- avoid major investing consequences- make sure you avoid these all-too-common mistakes:

Mistake #1: Chasing a Stock with Reckless Abandon

We’ve all fallen in love with a particular stock. Some stocks just have a way of luring us in through careful marketing, having lots of promise, or just being hot and talked about. However, the very

stocks that are so alluring and popular today can be the ones that end up in severe capital losses increases later if the popularity of the stock falls. Trends come and go (Myspace, anyone?), so be mindful of that and don’t stay devoted to a stock just because it’s “cool” or you’re into it; instead, look at financial figures and make smart, well thought-out decisions about when to let a stock loose.

Mistake #2: Not Listening to Contrarians

All kinds of people offer up opinions (often unsolicited) about what you should and shouldn’t do stock-wise. Sometimes, though, it’s the ones you least expect who can offer the best advice, like contrarians. They, for example, invested heavily during the economic downturn of 2009, a time when everyone seemed to be steering clear of the stock market, and they ended up, to everyone’s surprise, coming out on top big time. While it’s important to listen to the major, mainstream voices and advice in the investment world, be sure to consider a wide range of educated opinions and even to take some risks here and there. This is all made much easier with the help of an investment advisor, who can enable you to see which “out there” investment strategies might actually be pretty solid and what risks are worth taking.

Mistake #3: Not Rebalancing Your Portfolio

You never want to let your investment portfolio get too stale or too set in its ways, so be willing to change things up from time to time. Regularly take stock of how your stocks are doing, and be willing to make changes as necessary, and also make smart additions to your portfolio on a regular basis to keep it fresh and diverse.

By following these tips and getting the right investment help, you should see nothing but good come from your investment efforts.  #InvestWisely

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