6 errors encountered by each novice investor

To-morrow everything was in order, we must work hard today. This rule is particularly accurate description of our relationship with the finances. That now seems to be a decent amount, may soon lose half of its real purchasing power due to inflation. Preserve and increase the means we can use a competent management. If you ever thought about what would be good to make your money work, but do not know where to start, this article will help you.

Do not think that working with an investment only for those who have on hand has an impressive amount of money. Properly dispose of their savings must be able to absolutely everyone. Whatever your savings, it is better to put them into action than just a store house. So they will bring you real income and not be eaten by inflation.

The main danger for every novice investor - a lack of information. You can not get to work with securities, not knowing the basic principles of the functioning of the market and the rules of behavior on it.

Equally important are the theory and practice: the need to understand the market the device and see how he responds to certain events, to predict possible changes and quickly respond to them.

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If you want to learn how to trade on the exchange, it is necessary to pass a training course on the portal "Investing 101". Theoretical blocks here illustrated by practical tasks for the implementation of foreign exchange transactions, as well as experts act professional traders and analysts say the company "BCS".

Now we will talk about what should not be done in any case. Here is a list of frequent errors of those who are just starting to work with investments.

1. Lack of investment targets

If you do not know what you want to do investment, think twice about whether to do it at all. It defines the purpose of the investment horizon (the period during which you plan to invest), strategies and techniques to achieve the desired result.

Choice of behavior depends on what you want to do: to increase capital available for the conclusion of a major purchase, save for children's education or generate savings fund for a comfortable life on pensions.

There are two primary investment objectives: conserving capital and its multiplication. In the first case, you save your money from inflation, in the second - and even earn. Of course, you can not be limited to one goal and simultaneously work on multiple tasks. In this case, you need to create and monitor the appropriate amount of investment portfolios, each of which will have its own strategy.

2. Selecting the wrong strategy

Speaking simply, an investment strategy - it is the road that will take you wherever you want to go. You choose: to go on obviously safer and more long haul or cut straight, but faced with certain obstacles. Are you willing to take a chance and allow the temporary drawdown of capital, but in the future to make good money or prefer a small but guaranteed income? Respond to this question will help the purpose of investment. What time do you allot to achieve it - more or less than three years? This period - the border between short-term and long-term investments, and the choice of the approximate duration of work in the market largely determines the nature of your actions.

If you want to achieve desirable for one or two years, it is not necessary to invest in assets that are currently not profitable, in the hope that someday they will grow in value.

Good help will be a test to determine the risk profile, it can go, register on the portal "Investing 101". As a result, you get not only a description of the desired behavior in the market, but also indicative investment portfolio - a combination of instruments, identifying the potential yield.

3. Preference for one type of investment

Advice about what you should not keep all your eggs in one basket, give absolutely everything, who has experience in securities. This is especially important for novice investors who have not yet learned with absolute precision to choose the only asset, where it is necessary to invest all the funds. Remember, the more components in your investment portfolio, the lower the risk of failure. Even if you are giving preference to any one instrument - shares, for example - share equally their investments for various companies and industries. So you protect yourself from unnecessary disturbances in the case of unforeseen situations do not let fear get the better of sober calculation.

4. Fear of being left with nothing

Always remember that investing - it is not a casino. Talking here about the risk, we do not mean the loss of all your money to the last penny.

The risk in investing you can control yourself, as well as decide when to stop.

You set for yourself the level of drawdown of the securities that will not cause you to panic and not violating the course of the investment strategy. This is especially important in the case of long-term placement of funds, when at some point the stock significantly lose in the price, but then win back the fall. To not make the wrong choice, carefully study the history of the company, the securities you want to buy. Do not invest in the areas in which you do not understand. If in a familiar situation, you are ready to make approximate projections, the new branch can have completely different laws of development. Do you believe in anything, and do not worry in vain.

5. Orientation to the opinion of the majority

Market trends are changing sometimes literally in the blink of an eye. Keep track of them needed, but follow - not necessarily. If all massively buying up securities companies, think carefully whether it is necessary for you. Their price is growing by leaps and bounds, but can at any time stop and go down, so the benefits of this acquisition is very doubtful. Needless to quickly reset desheveyuschie assets: in the future the situation may even out, and you will be the loser. Of course, if the company whose shares you own, quickly goes to the bottom and is about to become bankrupt, from its better to get rid of papers, but generally do not copy the behavior of the crowd. Emotions - not the best assistant investor. Just remember that the difference between buying and selling must always be in your favor.

6. Too many thoughts

This error is common to all newcomers. Yes, at first afraid to manage their savings, so the process of deciding whether to buy or sell securities is delayed, and a good time, meanwhile, walks away. With such fears will handle stock trading simulator available to participants of the training course "Investing 101". Conditions as realistic as possible, even while the simulation coincides with the time of the main trading session of the Moscow stock exchange: the beginning of trading at 10:00, the end - at 18:40. You have virtual money which can be invested in shares of various companies, and watch the rise and fall of the securities you own. Excellent reinforcements covered the theoretical course and a good way to apply the acquired knowledge, without risking your own money. So you get comfortable in the more recent mysterious world of securities and will be able to go to the real trading on the stock exchange.

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