1. new investors don’t understand the risk and don’t know what is investing
hi my dear friends, when you new investor, then I welcome you. the mistake is always made by a majority of the people, for the reason of lack of knowledge in investing.
here I’m not talking about any particular investor. I include all the investor who is willing to generate big and huge amount of returns from their small investment.
the new investor don’t decide, where they want to invest and how to invest successfully. they always see the opportunity. if someone tells you to invest in the stock market. they don’t decide on their own. they suddenly put their hard-earned money into the stock market.
so it leads to a loss of total money from the stock market. understanding the risk helps you to protect yourself from the loss. my dear friends, how many of you know the secret to investing success? here I elaborate it, investing is the process of wealth increasing.
But 90 percent of the people think investing is money money-making machine. it is not a money-making machine. you can not start investing without money. but you can start a business without money. understand the difference between investing and money-making.
on the other hand; real estate, bonds, guns, gold, saving interest accounts, hedge funds extra… you have a lot of opportunities in investing. so new investors always focus on all opportunities and they make nothing in the end. so focus on one thing.
2, new investors don’t decide which investment is best for them.
every person has different talents, passion,s and goals. so every investor can not be good in all investments. so decide which investment is best for you. otherwise, you can not be successful in any investing.
let say you only love to invest in real estate. then don’t try to invest in the stock market. don’t buy the bonds and gold. you must focus on real estate improve your knowledge in real estate and master it step by step.
somebody not good at real estate but very good in the stock market. then focus on it particularly and increase your wealth over time in the long run of the market.
focus on one investment to build your wealth. When you master one thing, you can master all the investments. so my dear friends, if you beginner. then don’t make these mistakes anymore.
3, new investors try to make money, but they don’t try to improve their knowledge.
when your beginner asks these questions yourself. how much do you know about investing? where do you like to put your money to work? how much return do you get every year from your investment?
if you have an answer then you’re in the right place. don’t focus on making money. focus on what you don’t know and what you fear about. that’s where your investment return and success hide in.
clearly, if you beginner and a stock investor. then answer these questions in a comment. how many of them know; how to calculate free cash flow? for the particular industry. how many of them know how to calculate discount cash flow ? and how many beginners know how to calculate perpetuity discount cash flow?
how many of them understand how the discount factor works? without knowing these types of calculations. you can not find the intrinsic value of the business.
without knowing intrinsic value, you can not buy the share of stocks at the margin of safety. When you don’t buy at the margin of safety, you can’t predict how much return your getting from your investment. so always improve your knowledge in investing. then you will be more successful than others.
Big Mistakes: The Best Investors and Their Worst Investments (Bloomberg)
finally, if you have any more doubt about these. then don’t hesitate to ask in the comment below. we are here to help you.