Hi guys, I am Paul and today we are going to talk about the four biggest mistakes investors make.
Now before we begin, I just want to make clear this is not financial advice if you feel the need for financial advice then please reach out to a qualified financial planner. I hold an advanced diploma in financial advice so if I were to work in the United Kingdom, I would need the exact same qualifications.
Let us begin, what are the four biggest mistakes investors make:
Number #1 is pulling out at the bottom of the market. It is human nature to panic when asset prices fall but this is the worst possible thing you could do as you are buying high and selling low instead you should wait until the markets recover and there has not been a period in human history where the markets did not recover.
Number #2 put all your eggs in one basket you should be looking to hold a diversified portfolio of investments so if any one business fails it will not affect your return in any major way
Number #3 not rebalancing now this may sound counter-intuitive, but you should be looking to sell some of the winners and buy in the losers at a cheaper price because you are buying in at a lower price and you are more likely to see growth moving forward.
Number #4 not using tax shelters you should be looking to invest in either an ISA or an IRA or if you are an expat in an offshore jurisdiction where no capital gains tax is liable.
Now we have talked about the four biggest mistakes investors make you are probably wondering how you can make money in the stock market. if you are interested how I invest my client’s money then please click the link in description below.
See you next time,