9 Mistakes New Investors Make

If you are just getting started investing, or are still a beginner, you are going to make some mistakes. It is an inevitable fact when starting anything new that some blunders will be had.

This can scare a lot of people away—and even cause some to quit—before they can realize the gains to be had from investing. By reading the following common mistakes, you will have a good idea of what NOT to do, as well as what you should do instead.

1. Not Starting Early Enough

There is an old Chinese proverb that says, “The best time to plant a tree was 20 years ago, but the second best time is now.” The same can be said for investing. The best thing you can do is to get started today!

2. Mindset

Mindset is a key component to becoming a successful investor. You have to develop discipline to know what is a good investment and what isn’t. Having a strong mindset can help you separate yourself as a lifelong investor.

3. Fear

It is completely understandable for new investors to be afraid to get in the game. If you have set up a solid investing plan and are able to stick to it, you should be well on your way to keeping the emotion of fear out of the equation.

4. Lack of Patience

 Investing is a long game. It takes time to build wealth through investing. Get invested as soon as you can, and stick with it over the long haul. If you buy solid assets that you have done your research on, you should have no problem waiting for them to grow.

5. Not Sticking to Your Strategy

When you first start out investing, you may get the itch to buy anything that looks good to you at the moment. This is an easy way to get yourself into trouble and involved in some bad investments. Start small, learn some basic strategies for choosing which assets to invest in, and grow your knowledge from there.

6. Not Continuing Your Education

 If you want to stay in it for the long haul, you will have to keep studying, learning, and adapting. If you are not paying attention to what is changing and happening, then you will miss opportunities for investing in places that have real potential for big growth.

7. Not Having Multiple Exits

This goes back to your strategy, but when you purchase something you should always have an exit plan in place. Plan for the unexpected and it won’t be a shocker for you if the investment starts going sideways.

8. Thinking Too Small

This is not saying that new investors should dive right into the deep end and throw all of their savings in an investment. Put a plan in place for what you are going to do with the proceeds from any gains that you make. If you can roll some small gains into something that has a lot more upside, then now you are thinking big.

9. Not Doing Due Diligence

People will give  you advice on how to invest your money and what the newest, best thing is. It is up to you to do the research and find out if an investment fits into your investing plan/strategy.