Investment Failures and How To Avoid Them
Investment failures. Obviously, we'd like to avoid them at all times but that's impossible. No one is perfect and that includes you. However, with a little research, you can try your best to stay on top of those bad days and minimize risk, destruction and everything in between. So without further adieu, let's get to work.
INVESTMENT FAILURES: DON'T BE LAZY
This is really a life lesson in a variety of ways but it's particularly useful in the realm of investing. One of the biggest investment failures one can experience is putting something off. If long-term savings is something that interests you, then it's best to invest as soon as possible. Time is the key factor here. Time is what lets your money grow. Furthermore, don't just dump it all in one day and watch it grow. Growth takes effort. Spread out your investments over time. That way, if you buy high one week, you can offset that later when the market dives and you buy low. It takes more work, but overall, it results in a more productive outcome.
INVESTMENT FAILURES: DON'T BE IMPULSIVE
For this tip, we're going to look at the world of cryptocurrency. Cryptocurrency is an extremely easy market to be impulsive in. For example, let's say you really believe in a blockchain crowdfunding startup like YouToken (YTN). You think it will change the world. Hence, you put a few grand down during the ICO and wait for it to skyrocket. However, it's been two months and it doesn't skyrocket. In fact, it dips. You, being an impulsive person, sell your tokens for a loss. Two days later, the crypto market explodes and YTN hits $10 a coin. If you were patient, then you would have reaped all the benefits. We're not saying always hold, but don't cash out every single time the market is stagnant or takes a dip.
INVESTMENT FAILURES: DON'T BE GREEDY
Investment failures come in many shapes and sizes. But one of the most common investment failures has to do with diversity. You've heard this phrase time and time again. Diversify your bonds. Do it. Now. It's a common strategy. If you diversify your portfolio, then you'll have a greater chance at striking gold. Don't be like the 70,000 users at Vanguard that hold 80% of their assets in their own company's stock. Buy the market and see the results.
