The hardest part of investing can be learning how not to sabotage yourself. The first step is to recognize that we are human beings; emotional, easily influenced, and often, not as good as we think we are.

1. 6 WAYS YOU SHOULD
NEVER INVEST
Here’s some things you need to know to avoid
the pitfalls many others face if you’ve ever
thought about investing.

2. 1. Letting Emotions Run Wild
We’ve said before that
the biggest killer of
investment return is
your emotions and it
bears repeating.

3. 1. Letting Emotions Run Wild
Fear and greed rule the
market, and the market is
irrational. Do not let your
emotions overtake you.

4. 1. Letting Emotions Run Wild
Focus on the bigger
picture; your investment
plan and goals. Rather
than be ruled by your
own emotions, use the
irrational decisions of
other investors to your
advantage!

5. 2. Investing in Something
You Don’t Understand
One of the world’s most
successful
investors, Warren
Buffett, cautions against
investing in businesses you
don’t understand. This
means that you should not
be buying stock in
companies if you don’t
understand their business
models.

6. 3. Falling in Love with a
Company
Too often, when we see a
company we’ve invested
in do well, we love their
products, what they’re
doing, it’s easy to fall in
love with it and forget
WHY we bought their
stock in the first place.

7. 3. Falling in Love with a
Company
You bought this stock to
make money. If anything
changes, it’s time to
objectively reassess
your investment and
even consider selling
the stock.

8. 4. Unrealistic Expectations
Slow and steady usually
comes out on top – be it
at the gym, in school or in
your career. Why, then, do
we expect it to be
different with investing?

9. 4. Unrealistic Expectations
A slow, steady and
disciplined approach will
go a lot farther over the
long term. This means
you need to keep your
expectations realistic in
regard to the length, time
and growth that each
stock will encounter.

10. 5. Attempting to Time the
Market
Successfully timing the
market is extremely
difficult to do. Even
institutional investors
often fail to do it
successfully.

11. 5. Attempting to Time the
Market
Infact, one of our
speakers, Marcus De Maria
says, “It's not about timing
the market, it’s about time
in the market.” Don’t try to
play the market like you do
in a casino, it’s asking for
trouble and inviting
unnecessary risk.

12. 6. Failing to Diversify
While professional investors may be able to
succeed by investing in a few concentrated
positions, it’s not recommended for most
people. Stick to the principal of
diversification. Do not allocate more than 5 to
10% to any one investment.

13. Success Resources Pte Ltd
Main Office: 10/11 Pahang Street, Singapore
198611
Toll Free: 1800 7822 377
Direct: +65 6299 4677
Fax: +65 6295 2441
Email: info.sg@srpl.net
Website: http://www.srpl.net