tips to avoid investing mistakes - success resources richard tan

HOW TO AVOID INVESTMENT MISTAKES

6 MISTAKES YOU SHOULD AVOID IN INVESTING:

1. Letting Emotions Run Wild

2. Investing in Something You Don’t Understand

3. Falling in Love with a Company

4. Unrealistic Expectations 5. Attempting to Time the Market

6. Failing to Diversify

Develop a Plan of Action

Determine what your goals are and how much you need to invest to get there. If you don’t feel qualified to do this, seek a reputable advisor.

Develop a Plan of Action

Find one who will work for a fee and who does

not receive incentives to sell you high-commission products and will explain

to you the rationale for choosing one investment

over another.

Develop a Plan of Action

Do not expect your portfolio to make you rich

overnight. A consistent, long-term investment

strategy over time is what will build wealth.

Systemize Your Plan

As your income grows, you may want to expand your portfolio. Monitor your investments, review them and their performance over a fixed time frame you determine.

Systemize Your Plan

Evaluate whether your equity-to-fixed-income ratio should stay the same or change based on where you are in life.

Set up a “Play Fund”

We’re all tempted to take a bigger risk and “gamble” sometimes. So, instead of trying to fight it, go with it. Set aside your “fun investment money.”

As with any game, there are rules: You should limit this amount to no more than 5% of your investment portfolio. Do not use retirement money

Set up a “Play Fund”

Be prepared to lose 100% of your investment; and ALWAYS set a pre-determined limit to determine when you will walk away (Stop Loss).

Set up a “Play Fund”

Commit To It

Investing mistakes are part of the investing

process. Knowing what they are, avoid

committing them, develop a thoughtful, systematic plan and

stick with it.

Commit To It

Follow these guidelines, and you will be well on your

way to building a portfolio that will

provide many happy returns over the

long-term.

Success Resources Pte Ltd Main Office: 10/11 Pahang Street, Singapore

198611 Toll Free: 1800 7822 377

Direct: +65 6299 4677 Fax: +65 6295 2441

Email: info.sg@srpl.net Website: http://www.srpl.net