On one of my Friend's recommended me to invest in my long term assets. So I decided to give it a try. But I guess I was not at all successful in making good investments. There were many factors that let to my failure. Let me discuss them one by one so that you don't fall in to the same trap.
Lack of Domain Knowledge
With utter excitement I went and just made the investment in my long term assets without even understanding the current market structures and prices. I never considered important to take advices from the professionals and took made all bad decisions which lead to my failure.
No goal in mind
My dad always says that there should always be a proper goal before taking any decision especially in the terms of relationships and finances. I never made any investment goal which lead me to the failure during the last moment. There should always be proper planning in whatever we do. Absence of the same caused me huge money loss.
No Risk Knowledge
My friend only told me about the profits that I would gain from investment, but he forgot to tell me about the risks and knowledge. Whenever you are investing in short term or long term assets make sure your risk taking capacity is high.
Lack of patience
Patience is one of the most required quality any investor should possess. Lack of the same will always lead to investment failure. Risk is directly associated with patience.
No Investment Identifications
I never identified which investment is best suitable for me. Long term or short term. I straight away went and invested in the long term investments. Factors like risk, patience, goals should be kept in mind before deciding the type of investments to be made.
No Right Adviser with me
My friend is very new in this profession. He joined this business 6 months back and as a result of this I never got proper and good guidance from anyone. If I had good adviser maybe I wouldn't have committed stupid mistakes.
I was Over Confident
My dad always used to tell me, "Confidence is good, Over confidence is worst". I din respected his words and as a result of this I lost huge amount of money. I was over confident of my success in investments.
I always had a Bad Luck
A good investor is one whose luck always favor him. And my bad luck just goes hand in hand with me. I invested huge sum of money in playing in casinos and lost all of them.
Since very beginning of my life I have been very aggressive in whatever I do. As a result of my this attitude I never thought about the losses and always concentrated on making only profits.
I know I have built my own graves, but life gives us a learning lesson. I have promised to myself that I will never make any investments until and unless I am confident about the domain.