Did you ever think about pros and cons of investing in Forex markets? The fact is that you can make a lot of money with investing and online trading.
If entering an unfamiliar area and making mistakes scares you, your fear is totally justified.
Were you also taught all your life to stay away from the stock market? Were you told that investing is like a casino and you can lose money, it’s only for professionals and it is dangerous?
Let me ask you a question:
Are there things in life that you did even though you knew that they are risky?
For example: swimming or riding a bicycle also involves risk, and it requires some learning and practice before starting to pedal or jumping into the water.
Is there a learning process that is not made up of mistakes?
Mistakes are integral part of learning. When a baby starts walking, he falls multiple times until he learns. And at the end he is walking.
Beginner investors also make mistakes.
There is no need to be afraid of making mistakes, but you must do everything to make these mistakes at a lower price.
There are common mistakes that beginner investors repeat over and over again. I recommend you to avoid them.
7 common mistakes of beginner investors:
1. Starting investing in Financial Markets after making a mint of money in options.
Were you lucky of making lots of money in options from the start? If so, it’s probably the worst thing that can happen for a new options trader. The most chances are that you will lose it all by trying to repeat that success again and again. But in the end instead of nailing it down, you will have a painful loss of your entire account.
2. Putting all your eggs in one basket
Just like options, if you were lucky once, the second and third times might be less successful. And at the end, all the money are gone.
3. Throwing good money into bad investment
Buying more and more assets when the price is falling is called “substrate” in the language of investors. It is definitely in the list of “not to do” for beginners.
This is typical and common mistake among beginner investors who invest their money into a poor asset and continue to believe in it and buy more and more, even when it has failed them repeatedly.
Instead of leaving it out and reduce the risk, they just increase it. They will do anything to prove they are right when they thought that it was a good investment!
Even if you were lucky and suddenly your asset started growing, the next time it may not happen and your money will be gone.
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4. Taking loans to invest in the stock market
The debt itself here is not as bad as showing the signs of a gambler. If you are taking your investment business seriously, leave away any betting approach when trading Financial markets.
5. Investing in stocks with low trading volume
Even if your stock rises after you bought it, it will be very difficult for you to sell it. Some shares have a small number of buyers and they are always asking to buy at a lower price than its market value. Unless you trade stocks online with a big broker >>
6. Listening to the investment tips of your uncle, neighbor or a grocer.
Such tips move quickly through word of mouth, and spread like a pyramid.
Usually an “expert” gives you an investment tip received from another “expert” and so on and so forth.
As well as a financial pyramid, the first “expert” who released that tip is earning by selling at a profit while others who follow his tip are buying.
7. Investing through a Bank
A common mistake of most beginner investors is trading through banks.
The problem is that banks charge excessive commissions, give bad service and their branch officials have little knowledge in investing.
You will not find a single advantage of trading financial markets through a bank. Banks earn fortunes on the ignorance of most people.
Avoid this mistake – if you want to be a serious investor, join a serious broker to access the markets in real time for less price.
Want have a safe start in Financial trading? Social trading might be the best solution >>