5. Following the Crowd

Your investment decision should be your personal choice. You must not follow the crowd or a heavy advertised investment plan. Your deal will give gains or incurs loss solely to you and your dependents. Your investment plan must be suitable to your individual goals. Broker often approaches you for the deals which will fetch them high commission but could be inappropriate to your investment goals. Think twice before making an irrational investment deal which has the combination of non-disclosed cost and uncertain return.

6. Ignorance

We often ignore the fine prints of the terms and conditions relating to an investment deal. Always remember that being ignorant will never prove to be bliss in a financial market. When you make decisions of investing your funds in a company’s share then don’t only take into consideration the yearly performance of the company and its short lived profit. Instead look into the company’s performance over the last four to five years and its average rate profit. Select a company which is transparent and honest instead of those which does extraordinary things to give extraordinary result.