HomeHome SearchSearch MenuMenu Our productsOur products

Are you making these three common investment mistakes?

by , 03 October 2019
Are you making these three common investment mistakes?
If you're like most “information age” investors, you've probably taken a “do-it-yourself” approach to building long-term wealth.

I've seen many non-professional investors take this approach and, the truth is, it's rarely pretty.

Why?

Because there are three common mistakes people tend to make when crafting their own investment portfolio. And if you're making even one of them, it's likely hurting your pocket and potential long-term gains more than you think.

So today, I'm going to reveal these mistakes and show you the simple solutions to get your portfolio back on track - before it's too late.
 
________________________________________
Recommended:
 
Don’t miss your chance to pocket fast gains from the global financial markets - 389.61% on USD/ZAR, 52.88% on Brent and 65.79% on Gold
  
A small group of traders are banking profits every 3 to 6 weeks on the international markets… 
 
389.61% on USD/ZAR in just 24 days!
 
65.79% on Gold in just 21 days!
 
Readers are poised for more double-digit wins n the S$P500…
 
You now have a chance to join in. Just click here to learn more.
 
________________________________________
 
Mistake #1: DIY investors forget all about the big “D”
 
The biggest mistake DIY investors make is to put all their eggs into a very small basket.
 
“How small?” you ask.
 
Well, you’d probably be shocked to find out that most investors only hold three to four shares. And that means a large portion of their entire investment portfolio is allocated to a single stock.
 
That’s an extremely risky move.
 
Imagine if Steinhoff made up 30% of your portfolio. Your wealth would have been completely decimated. When the share price imploded in December 2017, shareholders lost almost everything!
 
Solution: Diversification. When building a portfolio, the minimum number of shares you want to hold is 15. However, in a perfect world, I wouldn’t allocate more than 5% to any one single company.
 
Mistake #2: DIY investors try to time the market
 
It’s about time in the market, not timing the market.
 
Now I’m sure you’ve heard this common phrase before, but it bears repeating – often!  
 
If you’re an investor, you buy to hold through thick and thin. Yes, I know it’s hard. After all, over a 30-year period, you’re going to experience at least two or three market crashes. And yes, it hurts.
 
But what hurts more is anticipating a market crash, selling your positions, paying brokerage and a hefty tax bill from SARS only to buy those stocks back later at a higher price and pay brokerage all over again.
 
Solution: When the going gets tough, keep your eyes on your long-term picture. Unless you’re close to retirement, don’t worry about market crashes – celebrate them. They’re like the Black Friday sale of the stock market world. You get to buy high quality stocks at major discounts for even better returns!
 
________________________________________
 
“If you want to make a killing from cryptocurrencies – read this book as FAST as you bloody can!”
 
Anyone with a tiny stake to spare could reap thousands – even tens of thousands of rands – from this erupting financial market.
 
In my book I reveal the name of the crypto I believe could eclipse bitcoin and turn a R2,000 stake into as much as R400K.
 
That’s it. For a limited time, R100 is all it costs to get your guide to the biggest wealth creation event in history…
 
My full case for why it could rise to become the #1 crypto in the world…
 
 
________________________________________
 
Mistake #3: Not understanding your personal risk profile
 
As I just mentioned, a market crash doesn’t really matter unless you’re close to retirement. The older you get, the more risk-averse you should become.
 
It’s one thing to go through a market crash when you’re 20 or 30, but it’s a different thing entirely when you’re 50 or 60. The younger you are, the more time you have for the market to bounce back. Later in life, there is a far higher chance you’ll need to access your capital while markets are at unfavourable levels.
 
Over and above your age, you also need to know and understand your personal risk profile. The more risk-averse you are, the less exposed you want to be to high-risk assets like equities.
 
Solution: If you want to understand your risk profile, get a free risk analysis from Rand Swiss here.
  
Christo Krog,
Rand Swiss, Wealth Manager


Are you making these three common investment mistakes?
Rate this article    
Note: 3.38 of 4 votes

Have a trading or investing question? Click Here


Related articles



Related articles


Watch And Learn




Trending Topics