Every investor would like to maximise returns while keeping risks under control – but that’s easier said than done. When the market is booming and practically every stock registers large gains, your judgement can get clouded and you may make the wrong investments.
Sooner or later there will be a market correction or even a crash. The value of your shares could plummet. What will you do? Unfortunately, the action that many investors take is not in their best interest. Instead of waiting till prices rebound, they decide to sell at a loss.
As a result, these investors would have bought when the market was at or near its peak and sold at the bottom. That’s a recipe for financial disaster.
This is not the only type of mistake that investors make; there are many others as well.
Here are a few simple rules that could help you to avoid the most common investment errors. If you can put some of them into practice, it may help you to boost your portfolio’s returns over the long haul.