I will show you the most common mistakes YOU ARE MAKING when investing, and if you correct them, it will make you richer, happier and achieve Financial Independence!!

When you invest in the Markets, or anything else you make mistakes. These mistakes cost you money, and also demotivate you into investing more. 

Let me show you the 7 ways you will always lose money, so you AVOID THEM and the last one is the one where people lose the MOST AMOUNT of money, so stick till the END!

1. Being Over-Confident 

You need confidence when you invest, you need to trust in your good judgement and decision. But when you buy a certain stock and it goes up by chance, you feel that you have it all figured out. Then, it drops, and you panic. Understand when it is a time for you to buy and hold, and what is your exit strategy. Also, limit your losses with STOP LIMIT orders. 

If you are investing in the lottery, you get impatient from the time you buy your ticket to the time the draw happens. That’s about three to five days. Then, you realize you lost your $2 and continue with your life. 

Investing in the markets is not a quick thing, UNLESS you are day trading. Day traders are also patient because they need to sit down early before the market opens, study the charts, read the newsletters, look at investor presentations, and then open the market and start taking decisions.

For non-day traders, investing in the market is LONG TERM, where you benefit from compounding, interest and dividends. 

Nothing happens overnight, so take a look at your investments once a month the most to make changes. 

IF you have $1,000 to invest in the markets, why are you going to risk $4,000?? IT makes NO SENSE! 

You are risking money that you do not have in something that can quickly turn negative. You cannot get a margin call on Real Estate, where you get leverage to acquire properties. If a property loses value, you can still get rents and hold it until it recoups. 

When you use margin and SHORT a stock like GAMESTOP, you risk $10,000 and suddenly you owe $100,000 because they lent you all this money… that is playing with FIRE! 

Use your account and risk what you have, do not risk money you DON’T!!

This is a good one. You ask your friend who has NO IDEA on investments on what he is investing. The guy tells you he just put $500 on this stock that will give him a 5% return. 

You blindly believe on it and go ahead and put another $500 on the stock. You don’t know anything about the company or management or values. You lose the money right away. 

Before buying a TV or a CAR you do your due diligence. You ask around, read reviews, check prices, drive around some of them, bother the salesguy for hours, negotiate, check AMAZON, ask to people that have owned them for years, and THEN BUY. 

Why don’t you do that WITH YOUR MONEY TO INVEST??? Don’t be a PREY FOR CHEAP MARKETING!

It is better to be invested in something than not being invested at all. I would rather listen to you tell me that you have 100% of your money invested in ONE THING making money than NOTHING AT ALL. But since you are better than average, let me tell you that you should protect your money from a falling asset. Aim for a % of your money into Real Estate, Stocks & Bonds, and Cash, with an option to Crypto if you desire. 

You should only keep enough cash to sustain your same quality of life for 6 months. More than that should go into Real Estate or the Stock Market. 

When you start losing money on a stock, you quickly sell. IF the market crashes, you go and sell everything. Understand that in Stocks and Real Estate, the loser is the seller. If you hold your asset enough time it will come back to its original price, unless you get a Margin Call. 

Foreigner Insight: 

The worst ways to lose money are investing blindly and fire selling….. Always diversify, invest patiently and don't follow advice from people that are not rich savvy investors!