By Alicia Baker
Investing is, of course, a very risky business and there are many things that can go wrong. People make mistakes every year, so what were the biggest ones that people made this year? Read on to find out. And make sure you learn from them too!
One of the big problems that people had was a hesitancy to invest more or at all. You can’t make money on stocks unless you are willing to put your money where your mouth is. People are still scared to invest and take that risk. But the fact is investing is a great way to make sure that you are financially prosperous in the future. It’s as simple as that. Every expert will tell you that investing is always than saving if you want your cash to grow. So, next year, make sure you remain cautious but not so cautious that you don’t invest at all. As long as you approach it in a safe and careful way, it’s not too difficult to make money. And don’t forget to think outside the box. Follow the link to find some alternative investments to look at in 2016.
Trying to time the market and second-guess it can be a risky game. And it very often does not work for people. You can’t second-guess what’s going to happen unless you know what you’re looking at. It’s simple to pull your money out or put your money in based on false expectations. But that’s why you should make sure that you time thing better and base all your decisions on facts and evidence. It’s only when you do this that you can be sure that you’re doing the right thing. Too many people were slow to learn that lesson this year. Of course, this doesn’t make investing foolproof, but it helps.
Underestimating Certain Chinese Stocks
It was definitely a strange and volatile year on the Chinese stock markets. Things were looking very dodgy at one point as the government tried to slow the freefall by pumping in money. But the fall wasn’t as dramatic in the long-term as it seemed at the time. In fact, many people are actually guilty of underestimates certain key Chinese stocks. There was a lot of money to be made by people who invested in Baidu, the company behind the largest search engine in the country.
Missing the Warning Signs of Failing Companies
As ever, there were a number of companies that fell short of expectations and people lost money. But the biggest problem here for investors must be the fact that the warning signs were not taken notice of. There were lots of signs that companies were stumbling, but people are always too keen to stick to their investments. Not pulling out when things are going wrong cost people a lot of money in 2015. Companies like Entertainment One and Poundland both caused investors to lose money. But when the initial stumble happened, many people would have missed the further losses if they’d have sold quicker.