How To Avoid Investment Mistakes Success Resources Richard Tan

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HOW TO AVOID INVESTMENT MISTAKES

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Transcript of How To Avoid Investment Mistakes Success Resources Richard Tan

Page 1: How To Avoid Investment Mistakes Success Resources Richard Tan

HOW TO AVOID INVESTMENT MISTAKES

Page 2: How To Avoid Investment Mistakes Success Resources Richard Tan

6 MISTAKES YOU SHOULD AVOID IN INVESTING:

1. Letting Emotions Run Wild

2. Investing in Something You Don’t Understand

3. Falling in Love with a Company

4. Unrealistic Expectations 5. Attempting to Time the Market

6. Failing to Diversify

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Develop a Plan of Action

Determine what your goals are and how much you need to invest to get there. If you don’t feel qualified to do this, seek a reputable advisor.

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Develop a Plan of Action

Find one who will work for a fee and who does

not receive incentives to sell you high-commission products and will explain

to you the rationale for choosing one investment

over another.

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Develop a Plan of Action

Do not expect your portfolio to make you rich

overnight. A consistent, long-term investment

strategy over time is what will build wealth.

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Systemize Your Plan

As your income grows, you may want to expand your portfolio. Monitor your investments, review them and their performance over a fixed time frame you determine.

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Systemize Your Plan

Evaluate whether your equity-to-fixed-income ratio should stay the same or change based on where you are in life.

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Set up a “Play Fund”

We’re all tempted to take a bigger risk and “gamble” sometimes. So, instead of trying to fight it, go with it. Set aside your “fun investment money.”

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As with any game, there are rules: You should limit this amount to no more than 5% of your investment portfolio. Do not use retirement money

Set up a “Play Fund”

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Be prepared to lose 100% of your investment; and ALWAYS set a pre-determined limit to determine when you will walk away (Stop Loss).

Set up a “Play Fund”

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Commit To It

Investing mistakes are part of the investing

process. Knowing what they are, avoid

committing them, develop a thoughtful, systematic plan and

stick with it.

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Commit To It

Follow these guidelines, and you will be well on your

way to building a portfolio that will

provide many happy returns over the

long-term.

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