No one invests to lose money, yet it happens every day. People want to invest for a variety of reasons. Many of those reasons lead to mistakes, which leads to loss.
A simple online search will bring up countless lists of mistakes investors make. Although most offer good advice, you’ll soon notice conflicting advice between those reporting the lists.
You’ve probably heard the advice to only use money you can afford to risk. One article included this point in their list of mistakes to avoid. If you’re using money you can’t afford to lose, then you’re putting yourself in a high-pressure situation. Your investing or trading decisions will be more relaxed when you are only using money you can afford to risk. See the complete article and its list of mistakes to avoid.
What are the other mistakes investors make?
According to Ben Carlson, author of “A Wealth Of Common Sense,” he lists seven of the biggest mistakes investors make. They are:
- Looking to get rich in a hurry
- Not having a plan in place
- Going with the herd instead of thinking for yourself
- Focusing exclusively on the short-term
- Focusing only on those areas that are completely out of your control
- Taking the markets personally
- Not admitting your limitations
We’ll talk about how to protect yourself from each of these mistakes in a minute. But first, it’s important to realize that everyone makes mistakes. It’s part of the investment process. The crucial part is how you deal with the mistake and learn from it.
Maybe you’ve seen someone who makes a mistake and blames others for their own bad judgement. They take credit when they win but blame the game when they don’t.
Carlson says, “Everyone knows someone else they consider a horrible investor, but no one ever thinks that about themselves. Yet the world is obviously full of poor investors.”
The problem is there are no easy ways to spot the terrible investor within that we all live with because every one of us has our own investing demons.
How to Protect Yourself
How can you protect yourself from becoming a horrible investor if that investor is living within you? And you’re trying to deal with your investing demons? Easy! Let iFlip help you!
- Looking to get rich in a hurry.
iFlip tells you upfront if you are looking to get rich quick, move along. iFlip isn’t for you.
- Not having a plan in place.
iFlip has a plan that involves building wealth slowly but surely. It uses algorithmic trading software with professional risk management to avoid catastrophic market crashes.
- Going with the herd instead of thinking for yourself.
iFlip’s mathematical algorithms patterned to NOT follow the herd. This automated trading software is designed to get you out near the top and in near the bottom of your trades. It allows your trades to buy low and sell high, which is ideal when investing.
- Focusing exclusively on the short-term.
iFlip’s algorithms allow you to ignore short-term market fluctuations knowing the long-term is taken care of. iFlip provides you the opportunity to beat the market using various portfolios, over time: 5, 10, even 20 years or more. Read about examples and details of a featured iFlip portfolio.
- Focusing only on those areas that are completely out of your control.
iFlip eliminates the feeling of indecision and allows you to focus on what you can control. Controlling your emotions, your level of risk, and how often you trade are things you can control. However, even those can be difficult to control. With iFlip, your investments are being managed every trading day through the algorithmic trading software.
See a related article The Importance of Taking Out Emotions from Investing.
- Taking the markets personally.
iFlip eliminates day-to-day personal decisions on when to buy and when to sell. The mathematical algorithms work so you don’t need to get emotionally involved in small losses or letting winners run. This isn’t robo-trading, but the best algorithmic trading software available.
- Not admitting your limitations.
iFlip opens up your time and resources to do what you do best: make a living and enjoy life! Very few investors are able to beat the markets consistently. Those that do, monitor their positions 24/7, spending an enormous amount of time and money getting educated. For 95 percent of people, it’s wise to admit your limitations and use iFlip’s professional risk management to build long-term wealth.
Carlson concluded with these wise words of advice. “Becoming one of the world’s best investors is a pipe dream but suppressing the world’s worst investor is something we can all strive for.
It’s far easier to emulate the world’s worst investors than it is to match the world’s best investors because mistakes compound against you much faster than successes.”
With iFlip’s investing help, you can be on your way to matching the world’s best investors. You’ll continue to do the things you love and do best knowing your investments are taken care of.