5 Mistakes Small Investors Commit Over And Again


BANGALORE: We all make mistakes at some point of our lives. Some mistakes are minor that can be compensated when you get a second chance. However, there are few major mistakes too that sometimes prove to be very, very costly and cannot be easily compensated. Investment is one such complicated area where you just cannot afford to make mistakes. Even though being well informed about everything, few small investors make some major and common mistakes while investing.

Here is the list of mistakes that small investors often commit:

1. Investing more than they can afford

This is one major and common mistake that small investors seem to make. Whenever a small investor comes across a good investment opportunity he will start arranging funds for it, even if he or she is not in the best financial situation at that moment.

It is simple; you will not be able to do a good financial planning if you cannot evaluate your financial assets and foresee your future expenses and income. By doing this you will often miss good investment opportunities and will get opportunities that you cannot really afford. So it is always better to know your financial situation primarily.