3 Common Mistakes Young Investors Make

Investment among young people is usually full of turmoil. The main problem that often hit young investors is the desire to get the maximum funds in the shortest possible time. This lust can actually get us stuck with fake investments. The thing to do is to ask many people who are more experienced in their field either directly or through investment books that we can easily get in the bookstore. Besides, we can also ask parents about their consideration whether it is better to start investing the money that we have through gold or deposits for example.  Do not ever be embarrassed to ask! Many young investors are misstep because most of them are reluctant or even feel the dignity to ask. We do not have much time to learn all things by our own, so it would be wiser if we can learn the good things that other people have done and avoid mistakes that can make our lives easier in the future.

Another common mistake that youngsters did was set a too high investment target. Targeting is necessary, but put it in a realistic number because when high targets are not achieved, the emotional state of young investors who are usually still unstable will lead them to not continue investing because they feel they have failed first and easily think that “this is not my passion, no, this field is not for me”. Generally, the goal of a country that wants to multiply investors will not work if the way it does is like this. So set the targets that are roughly appropriate! Once you feel the target is met, then increase the target bit by bit. It should be adjusted between the target and the average return on the type of investment being executed.

And last, actually it sounds so ridiculous: young investors are often confused when they get a profit. When they know that they are profitable, mostly young investors want to take the money and buy something they do not really need, which leads to the habit of becoming a consumptive person. With the money being withdrawn frequently, their chances of turning the money back become smaller. It would be better if the funds can be used partly then invested into other instruments. This is important so that funds can be further developed and diversified to avoid the risk in one investment instrument.

So let’s not give up easily and invest while you’re young, youngsters!

25 thoughts on “3 Common Mistakes Young Investors Make

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