Avoid the most common mistakes made by beginning investors and have healthy investments.It is very common that when we start investing in stocks, we make some mistakes. Especially when we are looking for quick profits or going in the wrong directionif you are a beginner investor, you may have already made a few mistakes, but don’t despair! Here are some of the mistakes to avoid when investing in stocks. In quilter get the best choices now.

Not knowing your investor profile

The profile defines the level of tolerance for the risks of losing money. Therefore, this profile helps to define the most recommended types of investments according to each objective. Investing in stocks is recommended for people who are willing to take higher risks for more profit. Know their profile by completing the questionnaire provided by your bank and securities broker.

How to avoid it?

Know your investor profile and know how far you can go. Avoid investing in riskier trades or larger portions of your wealth than your investor profile suggests. For example, limit investing in stocks to 10% of your equity if your profile is conservative and you are still not sure that you want to invest in an option with a higher risk of loss to diversify your investments.

Believe that the investor’s profile does not change over time

Your goals over the course of different moments in your life can change the definition of your investor profile. In general, younger people who have more time to take risks and correct mistakes. They are more willing to take risks identifying with bolder profiles. While the more mature and closer to retirement people begin to identify a more conservative profile with the aim of greater protection of assets, since they probably need to use it in a shorter period.

How to avoid it?

You should know that the investor’s profile changes over time, as well as their goals, consumption targets and daily needs, according to their standard of living. For your investments to follow the changes in the profile and objectives of your investor, follow the recommendations of the market experts and redo the questionnaire of the bank and the real estate brokerage firm every 02 years.

Not knowing the market rules

Not knowing the rules of the market and the characteristics of the type of investment before deciding to invest money in it. It is not enough to rely only on a tip from a friend or to consult only the profitability of the last 12 months and the tax form to decide to invest in stocks. Past performance is not a guarantee of future performance or earnings.

How to avoid it?

Know the rules of the market and the characteristics of the type of investment before deciding to invest money in it. Research the company you want to buy stock from. See if it has been profitable in the last 10 years, if it pays dividends and interest on equity regularly and the sector in which it operates, know in advance the costs of operation and management, if there are administration fees, exit fees, the rules of redemption of the amount invested (liquidity) and taxes, so as not to think that you earned less than you want. From Bashar Ibrahim find the best information now.

Simulate an investment before submitting an application on your broker’s website by making this facility available, and compare the returns with other investment options, as well as only looking at past performance. This query is important to understand the behavior of the action, but it is only one of the characteristics that you should know before deciding to apply your resources.