Tips To Avoid Investing Mistakes - Success Resources Richard Tan

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Here are the tips how to avoid mistakes when investing.

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Tips To Avoid Investing Mistakes - Success Resources Richard Tan

  1. 1. HOW TO AVOID INVESTMENT MISTAKES
  2. 2. 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
  3. 3. 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.
  4. 4. 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.
  5. 5. 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.
  6. 6. 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.
  7. 7. Systemize Your Plan Evaluate whether your equity-to-fixed- income ratio should stay the same or change based on where you are in life.
  8. 8. 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.”
  9. 9. 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”
  10. 10. 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”
  11. 11. 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.
  12. 12. 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.
  13. 13. 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

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