People who engage in investing of any kind frequently seek advice and tips in an effort to maximize their returns. Many sources for investing tips, however, are little better than educated guessers that charge you money for advice that is frequently available for free if the investor is willing to make the effort to uncover it.

With this thought in mind, here are some tried and proven investing tips that won’t cost one red cent.

1. No one cares about your investments as much as you do.

It is possible to turn all investing decisions over to an “expert” who will produce huge returns for you for next to nothing in the way of charges while you are free to sit on the beach and sip tropical drinks.

Obviously, this statement is patently false, yet investors fall for it and its many variations all the time. No one knows in advance what the outcome of any investment will be. It is possible to be right 90 times out of a 100 and still lose money. In investing, low risk equals low returns.

Take the time to determine your investing objectives and the investments that best suit those objectives. Even the best investment adviser on the planet has a handicap of which you are free: The adviser must attend to the accounts of as many investors as possible. You only have to monitor your own.

2. You can do everything right, but still lose money.

This is difficult to accept. Hours spent on research and investigation culminating in what is absolutely the best investment you ever made goes against you for no reason. The worst part is that there is no one else to blame. It would almost be better if you could blame somebody, but keep in mind that an advisor is owed a fee that reduces the gain from a profitable investment, but makes a losing investment even tougher to swallow.

3. Decide prior to committing investment capital what is the maximum dollar or percentage amount you are willing to lose.

Losses are part of investing. More importantly, all big losses start out as small losses. People are naturally competitive and want to win. This is especially true of investors. Even though it will seem like every time you limit a loss, the investment immediately reverses and would have returned a huge gain, resist the temptation to stick with an investment at all costs.


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