Anyone with financial literacy and a confident ability to read into trends and investment opportunities may find that their predictions come true. However, even totally experienced stockbrokers on Wall Street can get things wrong from time to time, and so it’s important to consider that when we invest, nothing is guaranteed.
This is especially true if we fail to perform our due diligence while focusing on the measures that matter. For instance, it’s not uncommon for most people to feel that if they don’t make good on an opportunity now, they will miss out on an essential investment opportunity. Sure, investments are totally tied to the timing of when you buy and sell a given asset, but it’s also true that the gung-ho fear of missing out (FOMO) many of us can exhibit can make lead us to making unsuitable financial decisions.
This, in effect, can prevent us from exercising sound financial strategies. It may even mean we fail to exercise basic common sense, such as by making sure that the value of the asset is exactly how it’s been described. But how to smart people fall into these traps? We’ll consider that, below:
Read Into The Details Before Jumping In
Of course, it sounds obvious to read about the terms and legal necessities you must think about, but because anyone has a voice online these days, sometimes verifying a fact for yourself, independently, is the best way forward. Is bitcoin legal in Australia? Well, it has been since 2017 yes, but the myth is still there, and so many people may find themselves subverting a good investment approach because of bad information. Disciplining yourself to perform your own research can help you avoid taking advice at face value.
Don’t Trust Financial Influencers As Standard
While there are many financial advisors out there who do wish to offer some guidance, and while taking the tips of people like Warren Buffet might not be so bad, it’s also true to state that financial influencers generally have a vested interest in keeping you around and having you support their brand. They achieve this by promising the world and not always backing that up. Beware of any plans you have to sign up for in order to get ‘the most sound investing advice,’ and use online resources to verify claims they make. This way, you can avoid being taken advantage of.
Don’t Put All Your Investment In One Place
While an all-or-nothing strategy can seem appealing on the surface, it’s also true to say that investment strategies are nothing if not diverse. No matter how much the value of an asset seems to be, no matter how sure the potential of short selling a stock could be, it’s never wise to stake your entire position in one place, no matter how much its meteoric rise seems to be growing. Keeping that in mind can help you avoid issues going forward, no matter what promises are made to you.
With this advice, you’re sure to avoid gung-ho FOMO when it comes to investing.