I want to share the biggest mistakes that I have made in my investment career and save you countless hours and money, doing the same things.
I know that talking about mistakes is not really the most fun part of investing, but it definitely will be a big part of your everyday life as an investor.
So, let’s get it over with.
When I got myself into investing, no one told me what to do and not do. Naturally, the most common approach is to:
• Read books
• Read blogs
• Watch videos
So basically, I got my hands on any information I can find. Not knowing many things led to making mistakes, which I want to help you avoid.
Mistake #1: I was moving from one strategy to another
It is never a good idea to change strategies quickly. Having inconsistent actions brings inconsistent results. That is not the right recipe for success you want to follow.
Mistake #2: I had the wrong expectations about investing
When I started investing, I had a big plan to make a lot of money overnight. I borrowed some money from my parents so that I would be able to raise $50,000 in investing capital. Completely wrong approach! Never borrow money to start investing because you can never be sure exactly what you will be earning.
Mistake #3: Investing full-time makes the most amount of money
It seemed logical that the more time you spend investing, the more money you can make.
Again, wrong! Full-time investing doesn’t mean that you can make more. Seizing the opportunity at the right time brings more profits.
Mistake #4: I focused on the strategy and not the concept
There is no unique strategy that can work with anyone, under any market conditions. If there was one we would all be millionaires now. When building a strategy focus on the concept and not so much on the step-by-step guidelines you need to follow.
Once again, I repeat that the markets are very volatile, so working around a concept would make your strategies more flexible and thus more successful in the long run.
What mistakes are you most afraid of making? Let me know in the comments below.