“Experience is a revelation in the light of which we renounce our errors of youth for those of age” ~ Ambrose Bierce
Here is an interesting article would share some lessons from my own investment experiences. An interesting factor is, I have committed all the listed mistakes but only once. I am sure, these mistakes never happen to me again. But, yes, I have committed all of these mistakes at the beginning of my investment activity and got the wonderful result of heavy lose. So, I thought I will give an opportunity to you to think and take right actions when similar situation arising to you.
Penny Stock Investing – At the beginning, when I started my investment activities, I was not only interested to invest on penny stocks, but I was worshiping them. Finally, the amount I have invested to some penny companies which is presently not available in this earth. It vanished away with all of my hopes. I learned from it. Penny stocks are just like drop of water falling to the desert. It would be there for seconds before vanishing forever. No one capable to recollect it once after it disappears. So, penny stocks are my nightmares now to even have a look!
Investing as per Broker – If you read my Investing Biography, you came to know the mistakes I have committed at the beginning. It was so fantastic for me. I have believed each and every word from my broker and finally, it gave me with excellent result of ‘total lose’. I found my broker loving me a lot as a client because; I was a regular trader with him. He was getting lots of profits from my trading activities and thus, was taking care of me. He was even ready to build a tea plantation inside the office to provide me fresh tea whenever I required. Today, after 15th years, I still hate to visit his office or have chat with him. Remember, brokers never advise you to invest for long term. Any recommendation from any broker intended to only short time than long term value investing. You can’t expect any help from any broker on long term value investing but, ample from him on trading.Believing Tipsters – Tipsters are some kind of cancer to the investor community. They can say anything like barking dog. I have once invested to an auto stock by believing the word of a tipster, and now I am searching for that company with Google map to locate. I feel the company may hide somewhere in the African jungles. Remember, do you show a treasure to anyone else, instead of taking it as your own? Tipsters never lead you to treasures but, they are there to lead people to hell. Do you know there major success factors? Their tongue, baseless words and of course, lots of fools around the investing world!Investing without Research – As I said with earlier article, research and study is an integral part to investment success. Without research, an investor shouldn’t able to make successful investment decisions. Beginner investor has 4 ways to acquire right investing knowledge. Reading right books, from the biography of legends, from your own life experience and finally from the mistakes you commit. This would finally shape one as a right investor by having his own set of successful investing rules!Investing Little – I was buying 10 stocks of 25 companies at the beginning of investments. This style ‘helped’ me to lose possible profits. Investing little is a good habit but, only if you wouldn’t like to cry later. This is the reason once Buffett said; once have identified a right investment, invest heavily to that. Never commit mistakes of investing little amounts to lots of companies but, have a habit of heavy investments with well researched, fantastic candidates. You will certainly be a winner!
Dear Readers, I have already said that I have committed all the above mentioned mistakes and learned good lesson from it. Is anybody around here feels no such mistakes happened to him? if yes, I can say either you have not yet start investing or a big liar. Do you agree or do you required me to show my back to get your kick?
Picture: Nick J Webb