How to Avoid Investing Mistakes (2)

Be careful with what mindset you approach investing with.


Thinking you are going to get rich in a week or two from penny stocks is dangerous.



Youre definitely going to need more patience than that and realistic expectations.



Im not saying you should expect the worst but only be prepared for it, there is a difference.


You definitely want to diversify.



There is no sense in taking unnecessary risks by having so much trust in one stock that you bet all of your money on it.


You need a portfolio that will weather the storms of the stock market.



I mention diversification many times on this site because it is one of the best defenses against losses.



Be careful what stocks become your favorites or which ones you become loyal to.


Remember they are only as loyal to you as long as business is good.


Though it may sound cold it really is about the money and you are just another investor.


So you must look out for yourself because no one else will.


You cannot afford to play favorites when it comes to your money.



No one will care about your money more than you.


Of course there are those who care about getting it but we are talking about keeping it and making more off of it.


Would you be willing to give me all your money if I just simply asked for it?


I didnt think so.


So dont give it away to those asking for it in a more creative sales manner.


Trust not what you see but what you feel when it comes to important financial decisions.


This method will definitely pay off in the long run.