EIGHT MISTAKES OF FINANCIERS TO AVOID

Choose the strongest climber
Most of the financiers choose for popular, high stocks. You have to look up and study the losers of the past years. The losers has to prove them, but the combination between risk and gain is a lot advantageous.

Unknown investments
You have to choose two studies that consider to sell a stock and two with a positive advice. It’s possible to estimate the dis- and advantages.

Afraid to sell with loss
You can keep a stock when you know it very well and you’re abreast of the fact that the bad news is only expendable. But you better sell your stock immediate when the news is very bad. Example: An important product that catches a serious delay.

Sell the winners to fast
You have to make a difference between stable and secure values (ex: Unilever) and speculative and risky stocks (ex: Option). You can’t hesitate to carry in the profit when it’s 50% on speculative and risky stocks, because they are to dynamic.

Bet on one horse
It’s recommended to have ten, preferably twenty, different stocks in one portfolio from several sectors and to diversify between small, large and medium-sized concerns.

Search confirmation for your own opinion
You have to search elements that contradict your studies and investigations. The best investments were made by thinking in the opposite direction.

Unknown investments capacity
You have to make a decision that has a substantial influence on your investments portfolio, namely: how long would and could you miss your money?

to under-appreciate dividends
The half of the total benefit of stock investments on a long term comes from dividends. The importance of exchange profit is reducing as your investments term becomes longer.

Investments gain more and more importance. It’s possible to gain a lot of money but also to lose. It’s necessary to know useful, profitable things about the investments market. Investments are a very complex matter, it’s not enough to be the smartest.

Jan

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