Top 3 Common Tendencies that make us our Worst Enemy in Investing
So, you have been investing for sometimes now but you don’t seem to make any profit, or you keep on losing your money. Well, you could be your worst enemy. Naturally, you may try to find people and things to blame for your failure just like most elderly individuals do. But the truth is that you are probably the biggest problem. Most senior citizens blame their age and sometimes lament that other people are taking advantage of their old age to trick them into losing their investments. While this can be true to some extent, it is not always the case.
Whenever money is on the line, the elderly often find themselves allowing their emotions to creep into their investing decisions and conclusions. This is one of the worst enemy in investing. There are disturbing tendencies that usually make us our own worst enemies especially when investing. Knowing these tendencies can help you overcome them so that you can prosper in investing and become one of those successful investors among older adults. These tendencies include:
- Hurrying to sell winning investments
Many senior citizens were never investors before when they were young, and they only started investing after retirement. If you belong to this group, then one of the most popular investing principles that are guiding you is, “buy low and sell high”. While this principle is the basis of investing, many senior citizens tend to hurry up selling their winning investments too soon instead of waiting for the prices to shoot a little further before selling Humana Health Insurance 2020 so head to https://www.healthinsurance2020.org. If you sell winning investments too soon, you will not get as much as you would if only you waited a little longer.
- Holding for too long onto loosing investments
Yes, we have already mentioned that you should not always hurry to buy or sell investments immediately the market starts to shift. However, you should not wait for too long either to sell winning investments or to hold onto losing investments for too long. The timing should be reasonable. When you hold on to losers for longer than necessary, you will lose tremendously. A wise investor knows when to hold on to an investment and when to sell.
- Making decisions without assessing their future implications
This is one of the biggest mistakes that many elderly individuals make in investing, and it is one of those things that are making them their own worst enemies. Before making any investing decisions, try to assess it thoroughly and know what implications it could have on your investments in the long-term and short-term.