Wednesday, August 29, 2007

The 4 Worst Things You Can Do As An Investor

Number one: don't stop reading. Too many investors see these common failures and simply brush past them, thinking "How could I possibly fall into the category of the average investor? I'm smarter than all of this; I can't be subject to these kinds of mistakes..."


More investments go sour from these different 'mistakes' than any other obstacle you'll face in your investing career. So please, do yourself a favor and keep reading. And keep an open mind too.

Number two is fear. There are two ends to the spectrum here so you have to find a middle ground. The most common is being afraid of cutting your losses. Don't stay in simply hoping it will get better, or you'll dig yourself a much deeper hole. What's worse is being afraid to make any mistakes at all. This has kept many of us from jumping into a sound investment. Just keep in mind that you won't be able to win if you're not even playing the game.

The second half of this is not fearing anything. Having that little voice of reason in your head can keep you from throwing away a lot of money. If this sounds like you, you're cure is risk management. Take the necessary precautions to set explicit limits as to when you get out of any investment, no matter the outcome. Follow the rules you set for yourself to keep your investing safe.

Next on the list: ignorance. I can't believe how eager people are to jump into the system and try to start making money without learning the game. You need to have a passion for learning everything in the market. By studying what you're up against and becoming knowledgeable about what you're doing specifically you'll have a far greater advantage than any other trader.

The big step: figure out what you do and don't know. It's harder than it sounds but by doing so you'll give yourself an honest approach to making yourself better.

Finally we come down to an investor's greatest enemy: greed. People are gullible...YOU are gullible. Too many people get sucked into the "miracle investment" that promises the amazing returns while hiding the major risks. Do your homework. If you take care of your professional ignorance above, greed should never get the best of you.

It's your money we're talking about here. You should be able to look at each investment objectively to ensure your financial safety. Armed with these easy techniques you'll be able to become a major player in the world of investing in no time.

Joe Harris provides all the proven stock market investing tools you need to succeed today, including investments in the gold market. For details visit his site:
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