Investment Don’t- Don’t Fix on Daily Moves
The stock market moves on a daily basis. So when looking an your investment, don’t get hung up on movements of the day. You can drive yourself crazy when everything might even out tomorrow.
Don’t Get Distracted by Macroeconomics
Macroeconomics forecasts often stretch way out in the future. Here is the thing about these forecasts: it is often wrong. So much can change between point A and point Z that you shouldn’t worry. It is hard enough to give a 10 day weather forecast and some people try to say how trillion dollar economies are going to move in eight months. Remember when people said several years ago gas was forecasting to be $8 a gallon by this time? Don’t get distracted
Don’t Focus on One Industry
Diversify is the name of the game in 2016, the same as it has been for a while. When you diversify your portfolio you protect your portfolio from bottoming out.
Don’t Follow Formulas
There will be people who try to point out formulas for investment success. There might be some basic instructions, but if it is how to strike it rich quick, it isn’t going to work reliably. If anyone could follow the formula and make large amounts of money, everyone would.
Don’t Be Short on Cash
Don’t invest all your cash. Always have some available. You never know when opportunity knocks, and you don’t want to be left empty-handed. So, always have some investment cash available.
Don’t Bet Against the U.S.
The United States, even when it is down, has one of the strongest economies in the world. With so many different industries and sectors, you shouldn’t bet against the U.S. If you do, you run the risk of missing out on the investment. This doesn’t mean you can’t invest in other nations and opportunities found around the world. That is different. Just don’t bet your money that the U.S. will fail. There are so many safeguards in place it isn’t something that will happen financially for long term.
Don’t Beat Yourself Up
Everyone makes investment mistakes. It is part of the investment game. So, should you miss out on a major investment or maybe you sold too soon, don’t sweat it. If you dwell on a mistake you’ll never be able to move forward.
Don’t Interfere
If you are using a portfolio manager or someone else to invest your money, don’t interfere. You can ask about strategies and what they are doing with your money, which is fine as it is your right. However, don’t tell them how to invest the money. A great coach knows when to let his or her players do their job.
Don’t Set Money Goals
Don’t set an amount of money you want to make by the end of the year. Why? Because you have no idea what the market will do as you really don’t have any control over it. Should you fall short you might start to invest sporadically towards the end of the year, costing you more money.
Don’t Get Emotional
Emotional investment is not a good idea at all. It can lead to all sorts of bad decisions. Always check emotions before making any kind of investment.