Winning financial strategies that can be read in the books are not news. The news is that there are so many ways that an investor can hurt himself — there is often a whole abyss between real savings and what they could and should be. Being greedy and lazy is not always enough, so there are some hints to help you.
Get to Know Yourself
Most people do not really earn anything and do not even realize or understand why. Deal with this fact and sort out your habits that are involved.
Distinguish Between “Time to Scatter Stones” and “Time to Collect Stones”
The inefficiency happens largely due to hyperactivity. Attempts to keep up with analysts’ forecasts and market news will only create chaos in your portfolio.
Sort Luck from Skill
There are very few diligent investment geniuses around, and your chances of stumbling upon one of them are small. Trusting someone with your savings, because this person has an excellent reputation is often the wrong decision. Probably, this investor once was just lucky — it’s hardly worth paying commission fees him.
Turn Lemons Into Lemonade
Surprisingly, not so much a bear market as its consequences hit the pocket of an investor. Many people retreat from risky investments and then return to them after income grows.
Avoid Opinion Traps
Sometimes you want to follow in the footsteps of a market expert with a supposedly brilliant reputation. Unfortunately, studies show that listening to the forecasts of a leading financial analyst is about the same as throwing a coin. We tend to follow self-confident “prophets” rather than those who are used to being cautious.
Don’t Consider Market as Money Machine
Nothing can be predicted either in the short or even the medium term. Most successful investors recognize that temporary setbacks are inalienable stages on the path to wealth.