Important Investing Mistakes That Could Have A Big Impact

If you are looking for a way to earn income from the comfort of your own home then stock investment online maybe for you

. Not many people have the knowledge that can help them to succeed and rely upon brokerage house to maintain their interests. There are some simple investing mistakes that can result in many missed opportunities and unrecognized potential. The following mistakes are the two that you need to avoid at all costs if you want to have a profitable portfolio.

Investing Mistake Number One - Thinking You Are Too Young

It is recommended that you start investing in the stock market when you are young instead of waiting 'til you are old. Many people still think that investing in stock is for older people who have the money to afford it. This misconception has stopped many would be successful investors from fulfilling their potential and making lots of money on the stock market. You could see the earnings that you could make shrink, and all you would have to do is wait as little as ten years. By the time you are 75 if you started investing when you were 26 your investments would yield well over $2,000,000 dollars and all you would have to invest was about $170 per month. This is based on a Annual Return Rate (ARR) of 10% a year every year throughout the life of your investment. The same investments with the ARR made just ten years later when you are 36 will result in earnings of only $800,000 by the time you are 75. That makes the cost of ten years a staggering 1.3 millions dollar difference. It is a great idea to set aside an amount of money that you can afford even if it isn't $170 per month. It doesn't have to be a massive amount of money to ensure that you get a great return on your investments.

Mistake Number Two - Know What You Are Investing In

Researching the stocks you are going to buy should be the first thing you do before putting you money on the line and yet there are so many people who know nothing about the company they have just become a part owner of. Understanding the financial history of the company you are going to buy shares in is of utmost importance before you invest your money. It is vital that you understand what you are buying into and how it will benefit you in the long run. Remaining unbiased when choosing which stocks to buy is key to being successful. Stocks that you picked based on research and careful planning are more likely to bring returns compared to the stocks you chose based on "feelings".

by: Michelle Rich

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