Most peoplerecognise that in order to maximise the potential earning capacity of their savings, the best route to take is not a savings account in a bank. Having said that, many opt to try their hand at investments without thinking about the venture in detail. According to a senior financial analyst at Wilkins Finance, gone are the days that people trust a stockbroker. Many prefer to do some research online and then in direct proportion to their appetite for risk, take the investment plunge. This factual matrix almost always results in the making of mistakes, some more costly than others. They say that experience teaches wisdom but when it comes to one’s hard earned money it is perhaps better to consider some of the mistakes that first-time investors make and how you can avoid them.
Purchasing on the authority of unfounded tips
The source of these “tips” can be family members, friends or even professionals telling you that a particular stock is a must-have for your portfolio. The fact is that sometimes the tips actually relate to what could be nothing more than a passing fad and could result in colossal losses. So, to avoid this pitfall, you do your own research as a first step. With the pervasive nature of the internet, it is likely that you can find information about almost anything. Investors hate getting duped and post their personal experience with different stocks and other types of investments, which may give insight into whether it is … Read More . . .