Saturday, June 14, 2008

Big Investing Mistakes To Avoid

As a newcomer to investing, it is quite possible that you will make investing mistakes. However, big mistakes can cost you a bundle. Therefore, it is a must that you avoid investing mistakes in order to be a successful investor.

Many investors make the mistake of not investing when the time is right, or else they will put off investing until it is too late. In order to make money through investing, you have to grab the opportunities that come your way. After all, you have to make your money do the work for you!

However, the biggest investing mistake that many investors do is investing before they are financially ready. To be a successful investor, you should have the funds available. Do not opt for investing if you have debts. First clear up all your debts like credit cards, high interest loans. Then make sure you have sufficient money leftover to take of expenses for the next 3 to 4 months. After that the balance you have can be used for investing.

If you think that you will need money in a short period of time, it is best to opt for short term investment. If you not an aggressive investors, then you should opt for safe investments like CDs or bonds. However, to derive maximum advantage from investing, you have to learn to spread or stagger your investments. This way you will get the best returns on your money.

You have to learn to select your investments carefully so that your money can grow. It is imperative not to panic if any of your investments drop by a few dollars. If the investment you have selected is stable, the rate will definitely go up. This is how capital market moves; sometimes it is up and sometime it is down.

If you avoid investing mistakes that are commonly made, you will definitely set up a retirement fund that will be able to provide you with a comfortable life.



By Pauline Go



About Author: Pauline Go is an online leading expert in finance industry. She also offers top quality finance tips like :

Bond Broker Phone Number And Address Directory, What is Bond Convexity, How To Invest In Stocks

Article Source: http://EzineArticles.com/?expert=Pauline_Go

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