In this weekend I put some thoughts on personal finance on the forum settings. He asked me to invest in order to share and give. I have a little split in my blog that I thought were a few hard lessons on my system. I think in general, I have very good, but not by much. If I do it all again, I would be definitely something different. So, here are my Top-10 mistakes and investment experience:
1) the cost or high financial advice on asset management. What struck me nuts is the only high rate of spending, investment funds and high cost of a financial consultant fees. You are funny? This is a complete farce, they have beaten the market in order to increase their contributions, and, frankly, not everyone can beat the market, right? There is an average yield of the General Counsel, not smarter than the collective whole in the market if, Warren Buffett, and if so, why not just buy shares in Berkshire? If you're really lazy, to get a reputation, and call it a day. You must not do their homework, and you can return without higher taxes. Acquisition of investment funds with a high cost ratio is simply silly.
2) Time of the market. Well, I have a couple of times and was skewered for it. As Benjamin Graham said,? The market is a voting booth in the day to day, but it is a balance in the long run. If you invest in fundamentally sound companies with growth prospects permitted daily fluctuation, if it is a good and long term basis. When I try to guess by the time that the public could land wind, and I fully pinchos its basic level - the game.
3) no goals. What are you investing? Why? If you do not know the answers to these questions, you do not like the result. When I invested gradually over several days, literally, in school, as well as trade with interruptions during the class, I never had a goal, it was in 1999, and every business seems profitable. It was crazy. I thought it was a guy from my smart shops were profitable, and we did not have goals, I thought it would last forever. I set a goal to complete the payment of the school, or buy a house, or the amount of pension XX - I was able to win the game and can not be against the damage that they are in 2000 and 2001. Set limits and your goals.
4) As part of its investment in general. Credits for investments in the stock market is usually not a good idea. Loans for education, the main house (sometimes) a better idea. I error on the edge, playing at this higher power. Of course, silly that most people lose money investing in this way. Have you ever heard the Gambler's Ruin? The theory is that the person with the least money is always the ruins of the victims. There is nothing better than the market with more yield without excessive risk. The rate may lead to excessive destruction of the entire capital. Not greedy, fat, pigs get slaughtered.
5) purchase of shares on the basis of informal conversations. Ask yourself how often I get the following advice from friends? I now have a rule when I hear, I do the opposite. This is terrible, I was martinis on the beach, at the present time, if I was always the opposite of what my friends told me it was a hot place. That's the thing, if your friend was a hot tip and told the public, will be the price at which the population would be a fair price, if not known to the public, it is unethical and could go to prison. If it's a good thing or a big story, and then in another direction.
6) Put the money to work at any time. This is absolutely the worst advice that I heard. If you just sit on the edge of the last year, and money in the treasury, have kicked ass. Do not jump to raise money to work, please be patient. Cash is a new active (current) in the morning, spend more money in real estate over stocks, so please be patient. Every time you purchase my fingers, I am wounded. Wait a little bit of patience and be ready - I am not defending the market, if they are trying to pave the way, just relax and take your time.
7) How to quickly become rich. I am very skeptical when it comes to land investment, but you hooked me even thought about the possibility of excess returns. If there is anything I can yell at you now, there is no free lunch! Excess returns to more risk than is normally required. Excess risk, usually means that you will lose money. I have some ridiculous scheme of gold and never again. Most often, at least once, but not that we ever happens twice. Again - there is no such thing as a return for no risk!
8) consider that the benefits of the document is the same as cash. As we all know that the current prices may very quickly disappear. Do not "private", thinking that you have more money than they really are. How to be careful and do not spend more money than you have. All common sense. A common side effect, if you believe that profits in the paper money is too easy to document the cost and easy slacker starts to lose value. Value until it is sold. Or sell, or stop thinking about it. Man, I have this ... Ugh.
9) Watch CNBC.
10) It is not its most favorable tax investment. When you get to your Roth IRA account, which is the maximum? Does your company's 401K, so that at maximum? This is a free lunch. Do you have your high return / high risk investments in 401K and Roth, and to a lesser degree of risk in the portfolio of tax? I can not help but note how often I have the opportunity.
Full disclosure - I am currently about 2% in equities. I am terribly bearish on the market, and I am very happy to be on the street. We have a long winter. This place, like all my posts are just my opinion, not as financial advice or recommendations. Make your own decisions and live with the results. Be smart.
Top 10 investment mistakes! Never reached
Labels: Investment, Strategy