I think we all go into investing with the idea that
we will make money!
In reality maybe that is a bit starry eyed, especially if you are not used to dealing in whatever investment you decide to invest in.
I got stung with some stock investments under-performing and not really understanding much about what they were or where they were. That was my reality check. It made me decide to do some research, do some training and to take more of a hands on approach to any future dealings with stockbrokers. I also diversified into real estate. Something I knew more about and could deal with better.
So How can we learn from past investment blunders?
We need to learn from our experiences and according to FSPInvest the best way to do this is to keep a diary of all your investments. This could be in the form of a notebook or a spreadsheet.
You need to keep a note of the following:
- Why you invested. – Was it because someone told you about it? Or was it down to research.
- How much did you think you’d make from the investment? – Did you have dreams of making 200% or 300% on the stock? What was your exit strategy when you invested (for both losses and gains)?
- When you actually exited the stock? And what were your actual gains or losses?
Their best plan is for you to check your diary before you get on the phone to your stock broker to buy anything ever again as It might just save you from that blunder yet again…
It could remind you of similarities with anything you’ve invested in before and if it does, maybe this isn’t a good investment after all.
Think I’ll stick with my properties… I like a bit of bricks and mortar 🙂
Go well till the next time