10 mistakes that make novice investors lose money

Remember what beginners are taught to ski, snowboard, surfboard? Fall. If you know how to fall, you are insured as much as possible. After that, you can start the technique. In investments, you must be able to insure yourself. And this means knowing how to distinguish a bad offer from a standing one, understand the main legal issues and navigate the international economic and political situation. After that, you can choose where to invest. This is the right start to your investment process. This is the beginning of the path to your capital.

And at the beginning of this path, one of the most important steps is a complete understanding of the main mistakes that usually beginner investors make.

1. The choice between investment and non-investment proposals

How do I distinguish them? Today in the world there are companies such as holdings, banks, funds, insurance companies. That is, there is a certain financial infrastructure and these are all investment proposals. But there are all sorts of pyramids and scammers, which are just a huge number on the Internet. These are not investment offers. Is it possible to earn money on them? Yes, you can. But at what cost? More precisely, the risk is just crazy. That is, 50% to 50%. Either something will burn out, or not, and even worse, it will bring debts. And here certainly we are not talking about some kind of financial plan or own strategy. Your business is how to deal with your money but do it at least consciously, understanding all the risks, and be prepared to lose.

2. The desire to get everything at once

Is it possible to quickly lose 40 kg in 1 day? Or one more thing – is it possible in 1 day to become a world champion, at least for one’s country, in any sport? Why doesn’t this happen even in thoughts? Everyone understands that for this you need to work patiently and disciplined for several months or years. And why does the question or desire to get rich quickly and immediately arise? Even assuming this, the big money received suddenly is lost just as quickly and easily, because a person simply does not know how to handle such amounts. Big money is a much bigger problem compared to small ones. And everything needs to be learned gradually.

It is the preparation of the body, proper nutrition and schedule that create the future champion. Understand this. And enjoy the process of becoming a wealthy person.

3. Hope for good luck

This is the same. There can be no hope and emotions in investments. This is a strategy, knowledge and skills. All.

4. Ignoring capital protection measures

Capital protection is the first thing an investor should think about. Then multiplication. And today there are many different protection schemes. You just need to use what the developed financial world provides.

5. Search for the non-existent

Stop looking for an aeroplane carpet, an invisibility hat or boots for walkers if you set the task to grow capital and live freely in abundance and prosperity. Without your labour, new knowledge, new habits and a new philosophy or worldview, nothing will happen.

6. The unlimited possibilities of Internet communications

From the number of scammers that is on the Internet right now, it is simply impossible to protect your  brain. And, as usual, all ingenious is very simple. Adhere to one principle and scammers will bypass you. They won’t even notice. Work with international companies with a good long-standing reputation. Work with funds and other financial institutions that have been on the market for more than 30-50 years. And also invest most of your capital in countries with a developed investment environment and strong, rarely changing legislation. As soon as you decide to invest in a dubious company, just be aware that you can lose that money and that’s it. Do everything consciously.

7. The presence of a large number of techniques for simplified market analysis and, as a consequence, the illusion that in this way you can quickly achieve large profits

Any simplified analysis does not take into account any factors. And they can significantly affect the result. That is why simplified market analysis techniques are not suitable for one or another use.

8. Wrong choice of investment instruments for solving various financial problems

Let’s get an example right away. Let’s say a person needs to buy a car in a year. And after 18 years, he also wants to send his newly born son to a prestigious university, and after 40 years he will have a retirement age. The tasks of this person are completely different. They are different in terms of time – 1 year, 18 years and 40 years. And investment tools to solve these problems will be completely different. And, if you mix them up, you can simply not achieve your financial goal and lose money, although investment instruments, in themselves, are good. It is important to build on the goal, creating your plan, and, investing money, make an informed, definite and concrete choice. Investment is a double-edged sword. If you do not know how to use it, then you can chop off your ear, nose, and even your head.

9. Comparison of an orange with an apple

There are short-term investment objectives; there are long-term investment objectives. And they cannot be compared. An individual investment strategy is needed for each goal.

10. Problem solving is not complete

Misunderstanding of the relationship between financial issues is another problem. Each person has two financial tasks. The first is to get rid of the problems – financial problems. And achieve your financial goals. In fact, living without thinking about money and working for money. And these tasks must be solved together, in a complex. They are not separate from each other, but, on the contrary, are connected. And we need to draw up a unified strategy that will help to remove problems and come to our goals. What do I call a solution to a problem? This will solve it so that it never arises again.


There are even more mistakes novice investors made. However, acquired experience always makes things easier.

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