Danger for investors


There are many tips that you need to do, but almost never mentions what needs to be done. Of those pitfalls that should be avoided for every investor. to become successful.

Here are 10 dangerous moments for the investor.

1. Trust unknown stockbroker. When you call and mesmerizing voice of promise that will double your money in 90 days, there is only one answer: immediately hang up. Gone are the busiest time of the early '90s, but there is still a lot of small businesses that are struggling to get up, grabbing for your money.

Nobody says that they are all crooks; most of them professionals working legally. But to get fantastic results that they so zealously say they have to take huge risks, but it's your money. They get their commission, regardless of whether you become rich or lose all your money.

2. Not doing your homework. In the market there are thousands of trading companies and it is not wise to try to take advantage of each of them. Select a dozen of the best and thoroughly understand all the mechanisms and motors selected companies. Study the company as if you were going to buy it in full, and not just a small share. Buy only what are good.

3. Speculation and not investing. If you follow the news and buy shares of a company unknown only because they are going to break, you do not invest, you speculate. This is nothing like the game of money, and it is not always activated, and in very rare cases. Unfortunately, this is - a recipe for poverty, it can testify to you of any trader who survived the marathon Nasdaq in 2000-2002 year.

4. Greed, passing the boundaries of common sense. Say you bought shares in a stable company that you know well. Then the price is doubled, and doubled again. Analysts ringing about it, and CEO makes the cover of the magazine business, so you suspect that you have a good chance, if all and will continue.

However, if you know the basic principles, you can see that not everything is as it seems. Market, ultimately regulates the prices of stocks, bringing them closer to reality. You have to sell the shares as soon as your inner voice tells you that stocks are overvalued.

Calculate the profit and do not worry if the stock price will rise even slightly upward, then the price is also rapidly begins to sink to the bottom.

5. Valid concerns carryover common sense. This - the flip side of the previous paragraph, where a stable company surge ahead of other companies in its sector.

If the shares would be good enough to buy half a year ago, and the main trends remained good, it would be twice as good, if they were on the giveaway.

If the industry itself is not going to close, you should hold the shares, while the others are panicking. Since the validity of the price setting adjusts the shares, and the result you will be satisfied.

6. You have lost. Well, then, you put your money into a company that was at the peak to get the benefit, and she began to lose ground. This is not an automatic signal to sell, but if the fundamentals are telling you that the company intends to stay afloat, you can cut your losses or, at least, save tax write-offs.

Waiting and pleading that the action will restore 90% of their peak values ​​and "to regain its former glory" - a waste of time; the money would be better to invest in a company with good growth prospects today.

7. Evaluation of investments based on experience. If a stock or mutual fund held ceiling 3 times in a row, it does not mean that you should buy them automatically. In some cases, it makes you a winner - in this case, the purchase brings satisfaction. But often, it may mean that the value of the shares overvalued. In mutual funds, which has more opportunities, times are tough, and talk about leaving it is not without significant risk is impossible.

8. Failure to track messages. What good is to identify a good company, if you ignore the subsequent quarterly and annual reports? You have a profit at auction, so it is in your interests to study the company's activities, to make sure that on the horizon there is no trouble. This includes everything - from financial statements to subtle hints.

9. Hearing experts. There are several open-minded stock analysts, the group, which does provide a useful, honest, and thorough analysis. You either do not share their opinion, or they completely drowned hucksters. Ask yourself why it is so rare to see a "for sale" appreciating even bad companies, when almost all other estimated or "buy" or "recommended buy". Something that creates an imbalance, but this is no longer any good.

10. Do not study the fee structure. If you have a stockbroker, especially a full-service, you have to be very careful in this case. What good is the 14% kickback if the total payment for the entire period absorbed more than half? In this case, you can save yourself leave security investments and tax-exempt bond fund! Even if your broker is smart, you will not lose anything if you ask him about lower rates. If you have some capital and long-term relationship with a broker, the differences that may exist, will be reduced to a minimum!

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