Investing money has its risk and there are no guarantees of a return on your investment. In reality, you could lose everything you’ve invested. It’s important to be as knowledgeable as you can about investing principles and terminology, market conditions, investment options, and information on what you’re investing in.
Don’t assume market performance. Many investors make the mistake in believing they can predict how the market will perform. They become too confident and believe that past performance is indicative of future return.
Don’t take on more risk than you can handle. If you don’t know what your risk tolerance is than stay clear of blind investing.
Consult with a financial expert. Some investors make the mistake of not consulting with an expert and getting advise. On the other hand, it’s important to know and trust the advisor that is giving you advice. Some financial advisors earn commissions selling certain financial products and may recommend them over alternatives that may be better suited for you.
Don’t make the mistake of not asking enough questions. If you don’t understand it, keep asking until it makes sense. There’s a lot of pieces to investing and it can seem overwhelming so take your time to learn and understand.
Know the fees and commission structures. Don’t just look at the potential returns but understand the fees you’ll be paying the advisor and the cost of managing your portfolio.