But I have good news: if you learn some secrets I assure you that you can change your results dramatically. And believe me, this note is not a “Call Now!” style advertisement.
There are three reasons why we lose money when investing:
- the emotional mistakes
- Not having a plan, or having a bad plan
- Not knowing the traps of banks and advisers
the emotional mistakes
Undoubtedly one of the main reasons why we lose money when investing is our emotions.
We make the same mistakes over and over again systematically.
Surely this has happened to you at some point:
“Many times we stick to our vision, no matter what the market is saying. For example, we hold a stock on which we are losing heavily, simply because of the false belief that it will eventually recover. In the same way, many times we sell and take profits too soon, for fear that they will start to disappear, even when the trend is still up.”
These are some typical mistakes made by both a novice investor and one with years of experience. It happens to everyone and, surely, it will continue to happen to those who will come. But we just want to avoid that. Later I will give you a solution to help you.
Not having a plan, or having a bad plan
There is nothing worse than investing without a plan, without a strategy that tells us what to buy, what to sell, how much to invest and when to enter and exit. This is a very common mistake: many people invest following their instinct or what some guru recommends on social networks.
However, even when the idea may be good, if it is not executed within a plan, it can make us lose money.
I am going to correct myself, there is something worse than not having a plan: having a bad one, convinced that it is a good one. The clearest example of this is the “buy and hold” deception. This is the belief that a great strategy is to buy something and keep it in the long term, because sooner or later “everything goes up”. This belief is a repeated mantra created by financial advisors to prevent clients from withdrawing their money from their accounts and continue charging commissions.
But the data shows that this strategy is bad: it just doesn’t give us a probabilistic advantage.
Not knowing the traps of banks and advisers
Another very common and no less important mistake is not knowing “behind the counter” of the financial industry. Conflicts of interest and hidden costs abound, and the investor is rarely aware of them.
In order to help you overcome these difficulties and make better investment decisions, we created the Financial Investment Workshop where in three mornings you will learn:
- Who’s who in the financial world. “What happens in the kitchen”; “the other side of the counter”. Incentives, conflicts of interest and hidden costs.
- What are the financial strategies that exist. Which ones you can implement yourself, which ones you should delegate and which ones you should avoid.
- How emotions affect decision making. The fears, the anxiety, the euphoria and the cognitive biases that make us lose and lose.
Believe me it’s a before and after this Workshop. And I am so convinced of what I am telling you that I propose the following: if you are not satisfied when you finish it, we will give you your money back, no questions asked.
If you want to know more, click on the following link where you can see all the information about the Workshop: Financial letter.
Source: Ambito
