{"id":14226,"date":"2015-03-02T14:40:55","date_gmt":"2015-03-02T06:40:55","guid":{"rendered":"https:\/\/www.imoney.my\/articles\/?p=14226"},"modified":"2015-08-07T11:50:53","modified_gmt":"2015-08-07T03:50:53","slug":"6-deadly-investment-mistakes-you-should-avoid-at-all-cost","status":"publish","type":"post","link":"https:\/\/www.imoney.my\/articles\/6-deadly-investment-mistakes-you-should-avoid-at-all-cost","title":{"rendered":"6 Deadly Investments Mistakes You Should Avoid At All Cost"},"content":{"rendered":"

This article is sponsored by Securities Commission Malaysia, under its InvestSmart initiative.<\/em><\/p>\n

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It has been said that \u201cMistakes are the stepping stones to learning.\u201d<\/p>\n

With that in mind, most investors, experienced or otherwise, will try their best to avoid making any mistakes when it comes to investing by making sure they learn as much as they can beforehand!<\/p>\n

The best way to start is to know what are the mistakes that you could potentially make, and finding out the best ways of avoiding them.<\/p>\n

We\u2019ve done the homework for you – here are six investment mistakes that you should not fall for:<\/p>\n

<\/span>1. Investing without planning<\/strong><\/span><\/h2>\n

Every investment portfolio should have an underlying strategy based on the financial goals you want to achieve.<\/p>\n

Unfortunately, many who invest do it merely by investing based on trends and hearsay. One might be dumping thousands of Ringgit into a stock just because his\/her friends are doing so.<\/p>\n

You need to establish a plan and know what you want to achieve.<\/p>\n

Step 1A: Financial goals should be quantifiable<\/strong><\/p>\n

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Step 1B: Evaluate your risk appetite<\/strong><\/p>\n

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Step 1C: Diversify your investment portfolio according to your risk appetite<\/strong><\/p>\n

A diversified investment portfolio consists of different baskets, also known as asset groups. Within each asset group, you can further diversify. For example, one of your asset groups may consist of shares, and you can then further diversify by investing in shares from different industries. Doing this allows you to spread your risk across different asset classes.<\/p>\n

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<\/span>2. Not doing your homework<\/strong><\/span><\/h2>\n

Don\u2019t invest in something you don\u2019t understand. However, don\u2019t let that stop you from investing either! Take your time to study your potential investment to understand how it works.<\/p>\n

Information is mostly free and easily accessible online. Read up about a certain investment you are interested in before taking the plunge.<\/p>\n

Conversely, you can seek professional help by getting a financial advisor to help you plan your portfolio. Even then, always take note of the basics and understand your portfolio or investment plan.<\/p>\n

Here are some websites to help get you started:<\/p>\n