Updated: Oct 6, 2021
So you want your financial independence?
Whether you want to travel, retire early or feel that sense of freedom that comes with financial insecurity, you’ve surely got your work cut out.
Now, when it comes to investing.
You might read something like this:
“76% of retail investor accounts lose money when trading CFDs with this provider” - Trading 212
“67% of retail investors lose money when trading CFDs with this provider”. - Etoro
Naturally, those odds aren’t good. And we all know there is a risk to investing your money.
Everything comes with risk.
The smart investor. The rational thinker. Anyone with a brain cell wants to reduce that risk.
That’s why you’ve bothered to read this.
A beginner investor that overlooks the information beneath may fall foul of the market and sustain huge losses and waste masses of time.
And the truth is, it's such simple stuff, reading this is all you need to do too.
The greatest thing you can do to protect your balance is to avoid these two shockingly common mistakes.
DO NOT ‘Go with your gut’
We’ve all had this advice before and doing what feels right is great emotional advice.
Here’s the catch. Emotions are an enemy. When it comes to investing you can’t make decisions based on how you’re feeling.
This could lead you to selling declining stock before a huge incline. Buying stock without enough research. Or worse, buying stock at its peak just to watch it crash.
This happens far too often.
DO NOT ‘Put all your eggs in one basket’
If you fail to diversify, you’re not spreading your risk.
Should a stock or investment fall, you’re going to feel the effects.
If you’ve thrown all your money into one market, you’ll have your trousers round your ankles if that market dips.
Spread yourself. Multiple stocks, multiple markets.
Fingers in many pies.
This might sound simple, but it’s actually very hard.
It’s unfair to expect yourself to learn the inner workings and history of an entire market each time you invest in something new.
It’s unfair to expect yourself to learn every strategy available to diversify the way in which you invest.
People dedicate their whole careers to perfecting their strategy and market.
Some of us wouldn’t even know where to start.
Your best bet is a tool.
The big financial institutions rely on talented and experienced individuals to make their money for them. So why wouldn’t we?
Copy-trading on the platform we use has grown into a 10M+ community across 140 countries.
It’s a great platform for beginners.
Using it, you’re copying the trades of experienced investors.
They’re knowledgeable in their markets and strategies.
They allow you to spread your risk by investing in different strategies and markets.
They’re doing all the research for you.
The trades are automated. You’re buying with the trader.
The key thing is to pick an investor that has a risk factor you’re comfortable with.
A score of 1-10 is used. Anything lower than 4 is considered pretty low risk.
As long as you remember:
Do not let your emotions rule you, only invest what you can afford to lose.
Research your investor, align yourself with the relevant risk factor.
Diversify, diversify, diversify
Remember this could be the key to planning your future.
Whether you want to travel, retire early or feel that sense of freedom that comes with financial insecurity.
There’s no time like the present!
There’s no point sitting on this.
We’ve created a detailed PDF making it easy to get started in as little as 15 minutes. We want to empower as many people as we can to build their wealth, starting with you.