Novice investors must constantly learn. It is important for them not only to study market instruments and trading rules, but also to try to avoid common mistakes of beginners.
You have no purpose
If you do not know why you are investing money, give up this venture. Only a specific goal determines how much you invest, for how long you want to save money. Based on the goal, you develop a strategy to achieve the result.
The goals themselves can be different. People invest money for expensive purchases, save money for the education of their children, and want to ensure a comfortable existence for themselves.
Capital can be simply saved or increased. In the first case, you will protect money from inflation, in the second, you will also earn extra money.
It is not necessary to set one goal, you can select several tasks. In this case, you need to create an investment portfolio and develop a strategy for each goal.
Wrong strategy
You are looking for a strategy yourself. Simply put, it is the path you define to achieve your goal. You can choose a reliable, but long way, or risk part of the capital in order to earn decent money later. Decide what kind of investment you are going to make. Long-term - more than three years or short-term - up to three years. The investment term determines the nature of your actions. Do not invest in assets for a period of 1-2 years in the hope that their price will rise.
Only one type of investment
You shouldn't invest all your money in one asset. Especially if you are a novice investor and do not yet know which investments are more profitable. Even if you prefer one instrument, for example, stocks. Divide investments equally across different companies. The more parts of your investment portfolio, the lower the risk of failure.
Fear of losing all your money
Investment is not a casino. Here you yourself determine the size of the investment and choose a company. In order not to be afraid of losing every penny, invest only in securities of trusted companies, the mechanism of which you know. After all, securities can both lose price and gain. This will protect you from unnecessary worries.
Think long and listen to the majority opinion
It is difficult and scary for novice investors to manage savings. Therefore, they try to choose proven paths. For example, buying securities that everyone is buying. Of course, now they are profitable and seem to be profitable, but the situation sometimes changes and a company that offered profitable investments may go bankrupt. In order not to risk anything, take a training course on investing, invest virtual money, make a profit. Thus, you will practice and learn the mechanism of work. After that, you can go to real trading on the exchange.
