You will probably make some investing mistakes as time goes by, however, there are certain big mistakes you need to avoid if you want to be a successful investor. For example, the biggest investing mistake that you could make is to not invest at all, or to put off investing until later. Make your money work for you, even if all you can afford is $20 a week.
While not investing at all or putting off investing until later are big mistakes, investing before you are in the financial position to do so is another one. Get your current financial situation in order first, and then start investing. Get your credit cleaned up, pay off high interest loans and credit cards, and put at least three months of living expenses in savings. Once this is done, you are ready to start letting your money work for you.
Don’t expect to get rich overnight. Instead, invest for the long term, and have the patience to weather the storms and give your money time to grow.
Don’t put all of your eggs in one basket. Scatter it around various types of investments for the best returns and to minimize risk. Also, don’t move your money around too much. Let it ride. Pick your investments carefully, invest your money, and allow it to grow. Don’t panic if an investment drops a few dollars. If the investment is worthwhile, it will likely go back up over time.
A common mistake that many people make is thinking that their investments in collectibles will really pay off. Don’t count on your antique or book collection to pay for your retirement years! Collectibles can be an enjoyable hobby and might appreciate in value, but it's best to not rely on them when preparing for retirement.
Don't neglect educating yourself. Learn about diversification. Study financial history. Learn about the psychological factors that cause people jump on the bandwagon near the peak of a market. Be sure to invest some of your money in assets (such as precious metals) that will likely retain their value, even during a financial crises.
A little education and patience goes a long way. Following these tips should help you to successfully invest for your future.