What you should do if you make an investment mistake

Julie Brownlee, Fsp Invest, 11 Mar. 2015

Tags: investment mistake, mistakes, investing, invest, investment, investment strategy, handling investment mistakes,

In spite of following the best strategy, mistakes happen when you invest.

It’s an unfortunate aspect of investing.

So what should you do if you make an investment mistake?

Read on to find out how you should handle it…

Handling investment mistakes

One of the most important aspects of investing is how you handle any mistakes you make.

From each investment mistake you make, you need to learn from it and move on. And you need to have strategies in place to prevent any mistakes becoming bigger ones.

For example, whether you’re investing or trading, it makes sense to run strict stop losses. This means that you know from the outset what your losses will be and how much it will cost you if your reason for entering the position turns into a mistake.

Sometimes it happens. Things don’t work out as you think they will.

What to do when an investment goes wrong

The first thing you need to do is know when to cut your losses. Don’t start moving out your stop loss in the hope of a recovery.

If a recovery doesn’t happen, you’ll end up losing more money as a result.

And once you exit a position, don’t keep watching it to see what it does. If it eventually goes the way you initially thought it would, you’re only beating yourself up for nothing.

You have to accept that you can’t always be right in the market, Dr Steve Sjuggerud in Daily Wealth explains. Remember, you’re not in the market to be proven right, you’re in the market to make money.

Bottom line: If you make an investment mistake, make sure you cut your losses early, don’t let you emotions interfere and only look at the investment again when it’s no longer personal.

*********** New release ************

Francois Joubert has JUST uncovered 5 little stocks that are sure to be the biggest winners of 2015!

These shares are so hot, Francois believes that EACH and every one of these under-the-radar stocks could earn you at least 80% on your money over the next 18 months.

Click here to find out more…


Related QA

d.c.heger asked:
MY QUESTION IS – I bought Bitcoin & Etherium some time ago – at first they grew nicely but now they are lower than what I paid for them. Should I [read more]
Published at 04 Apr. 2018 in: Investing 5 shares due to rocket 1 Answer
kavesh.maharaj.73 asked:
Hi Josh. I would like some advice on TFSA. I can get an interest rate of 7.8% nominal at a bank if I invest the R33k upfront in a fixed deposit [read more]
Published at 19 Mar. 2018 in: Investing Tax free savings vehicle 2 answers
kavesh.maharaj.73 asked:
Hi Josh Quantum wants to buy back shares from shall investors at what I think is a low price of around R3.86. You tipped the share in February [read more]
Published at 14 Mar. 2018 in: Investing Real wealth 5 answers
elizastrydom asked:
Hi Timon I am interested in registering for your Red Hot Storm Trader service. I am already a Red Hot Penny Shares investor. My question is [read more]
Published at 28 Feb. 2018 in: Investing Trading platform and broker 1 Answer
ManuE asked:
I have an interest in investing in Bitcoin, I just don't know how. If I buy Bitcoin with R15 000, how much can make (Return On Investment)? [read more]
Published at 25 Feb. 2018 in: Investing Investment 1 Answer

Related articles:




Youtube Twitter Facebook

Connect with us:    

  • Accelerated Investor
  • Accessories