Perhaps your portfolio was going great until you noticed you have been losing more money more than keeping it. Do you find yourself selling more than you need to? here a few bad habits every investor needs to recognize and how you can avoid them if you pick them up again.
Save More, Withdraw Less
Money Here, There and Everywhere
There are a lot of stock investors in chat groups who like to boast about how much money they took out from their growing stock accounts, but why are your harvesting your crops early? Unless your investing as a hobby, save more and withdraw less. You’ll make money in the long-term if you leave your account alone.
This is the most common disease to an investor, but we are human after all. It’s hard to notice when your favorite stock goes down 15% and you know the only simple thing you have to do is sell. However, have a plan. Set a “stop loss” or have a written rule as to when you need to sell. Most of the time the stock goes back up and you’ll then regret that you had sold your shares in the first place (ouch). Keep in mind that whenever you sell, you always invite the “taxman” to your party.
It’s important for every investor to keep up with financial news, but these articles can destroy your portfolio if you listen to their every move. Be relieved and know that you don’t have to react to the financial news, they don’t your portfolio (necessarily), you do.
Unlike going to a job work for money, investing lets your dollars go to work for you. If you find a good investment strategy, be committed and stick to it. Continue to stash money into your account and sell when its necessary.
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