Debt advice for seasoned investors when increasing their portfolio
Thu, 08/11/2011 - 9:03pm | by jasonholmes
You may be a real estate investor first but also invest in gold and bonds for your portfolio. You may need to increase your portfolio so that you’re financially better off in your future. But if you don’t abide by certain rules, you may fall into debts and may have to break your portfolio of ways to pay off debt.
That can be terrible for your future too. Since, you’re investing for your future you'll surely want to have your portfolio give you better returns. Take note of the mistakes that even seasoned investors make and try to learn from the mistakes. This is a debt advice for all the investors who can avoid debt.
Mistakes to learn from when increasing your portfolio When you have a good investment portfolio, you must also take certain steps to make your money grow in it. Growth of money is very important if you’re investing in anything. Investments are for your future endorsements and they give you financial freedom.
Try not to make any mistakes when you’re investing or else you may fall into debts. Take a look at the major mistakes made when investing:
1. Impulsive investor
“Too good to be true” is the kind of phrase you need to pay more attention to when you’re putting heavy money in any kind of investment. When you’re investing any real estate, you must start small. Try to see the returns you get in this investment. You need to wait and watch. If the market conditions are good, you can sell off your property for better price. But you may also wait for the price to go further up and rent out your property. With that money you can invest in gold and stocks and bonds to increase your portfolio. But you must not be impulsive and get blinded by your profits.
Always remember this all can go down if you’re not careful and you may incur heavy losses. Try to check the local market news regularly for your own good.
2. Stock buying on the basis of appearance
You may think of increasing your portfolio and invest in stocks. This is quite a good idea but you must start small at first. Less profit is better than huge debts. You must thoroughly check the local and also the national stock market and check which stocks are really cheaper. If you buy stocks on the basis of their appearance and not as they are, you may incur losses and your profits may go into getting out of debt. Even seasoned investors make this very common mistake of comparing the current price of the share with the share whose price is high for a year or so. This is really a grave mistake you make when you start investing in stocks.
Try to analyze and reason out why a stock price has fallen rather than running behind a fallen stock. The share that has fallen from its high range may not give you any profit.
3. Underestimation or overestimation of abilities
As an investor, you have a lot of capabilities and if you have doubts on yourself, you must stop them from overtaking your confidence. Any investment requires time and research. If you think you’re not sophisticated enough to invest in shares and stocks, think again. If you’re overconfident in your investments, that can also put you in debts and losses. You need to be confident take some time apart from your busy schedule to control your portfolio and make it more profitable. If you do this, you’ll surely have no worries about finances in your future.
The 3 mistakes cited above are the most important ones and many experienced and learned investors commit them. If you’re passionate about investment, you must try to avoid these mistakes and get ahead in your life.
Image by Aaron Patterson