Typical And Repeating Investment Errors

Many investors often make typical and repeating mistakes. Basically all of them are clear, but always there is some force, forcing to neglect rules and as result we lose money, we incur losses. William D. O’Neill has gathered the list of principal views of errors at investment.

I suggest familiarizing and finding the errors that were admitted in own investment in the past.

1. The aspiration to earn quickly and a lot of. Without serious necessary preparation, development of methods and reception of skills there is a probability of acquisition of doubtful assets.

2. Fulfillment of transactions under helps, hearings, announcements of crushing and other news events.

3. Inability to distinguish the good information and to draw a conclusion on the basis of correct councils.

4. Inability to generate own opinion at decision making, work without the constituted action plan and rules. Concentration of time on assets acquisition, without planning time and terms of sale.

5. A biased sight at assets and purchasing of “old familiar names». Acquiring shares of the companies only because they work decades in the market, it is possible to drop easily young and perspective and to lose possible profit.

6. Inability correctly to generate criteria of a choice. Quite often the investor takes shares of not prosperous companies which have doubtful indicators have arrived, growth of sales volume, profitability of the capital, aren’t leaders in the market.

7. Purchasing on price reduction not always means the successful investment. It is necessary to remember that if the price has essentially decreased, there is a probability of repeated decrease. It is more reliable to wait stops of falling and to see on a drawing bottom forming.

8. Non-use of schedules and leaving from share purchase which leave on new level of the price. When the share reaches new top, personal opinions and feelings often get the best of an objective estimation. The best time for purchasing in a bull market is just when the share leaves price consolidation or serious area of base in 7-8 weeks.

9. Purchasing greater quantities of cheap shares, rather than smaller quantity of the expensive. Cheap shares have low cost not casually, they are usual accompanied by higher commission fee and margins, higher risk, wide spreads (a difference in percentage terms between ask prices and offers).

10. A choice of “second-grade shares” because of their dividends or low coefficients. Dividends and coefficient are not so important by consideration of shares, as a profit per share gain. More productive companies pay low dividends and reinvest the capital in research and development or other possibilities of enhancement of business.

11. Rare use of transactions “at the market price” and an establishment of price limits on warrants. There is a probability to miss the market, and to incur losses or to drop the moment of successful acquisition.

The times when governments have been flooding people with all sorts of grants have passed. At least for some time. But that does not imply that one must get rid of the idea of getting small business grants.

Everything is possible with smart attitude; small business grants including.

Read this blog for more practical tips about grants, how to apply for grants, grant examples, traps and ticks of the grants. This information will help you to get small business grants or any other grants easier.

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