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| Photo Credited to Oley Ivanon |
Because knowing and avoiding common mistakes in investing will help prevent you from losing your money in the market and help you to choose where you experienced it before, that double or triple your money trading in the capital market for a short/or long term.
Money is like wings, and it will vanish into the air when you invest wrongly or do wrongly or if you don't learn these common investing mistakes.
Let us read some case studies on common mistakes you must avoid it as much as possible.
Case Studies on Common Mistakes in Investing Most People Make in the Capital Market
Common Investing Mistake 1: “Mr.Too Know” Attitude
Mr.David was paid well, but he was retired from work, leaving him N10 million as his retirement benefit in his savings bank account. But he felt that Nigerian Breweries Plc was doing so well after depositing in Wema Bank Plc so he withdrew N10 million to invest it in this company for N120 per share, but he was advised to wait till the share price would come low, but he said “I too know” .
But sorry, he collapsed for about two months as he read in the local paper that the price crashed to N 38 per share. The ‘I Too Know’ Attitude is dangerous that you should not do it.
2. Common Investing Mistake 2: Financial Irresponsibility
A real man had more than ten million dollars to his name. And he was so rich, but he lost million dollars he made money from business ventures and investments where he hired the group of investors to manage his money because he was too busy in his business ventures to watch and control carefully where his money had gone and come. This is an advice to everyone of you who read this article.
Common Investing Mistake 3: An Excuse Not For Investing
Two male married employees were met and admonished to invest in stocks for future emergency while they were outside their work offices, but one of them, Mr. John excused that he could not invest in because of their family that he wanted to take care of them with his salary while the other obeyed this advice once..
And fate would be on them because an early retiree, Mr John, was died of stress before his gratuity was dropped in his hand while the other was resilient to where he invested before and sold so as to set up his own retail business from scratch successfully after they were disappointed many times as their former boss promised them with gratuity. It is advice that you and I should not excuse ourselves about it.
Common Investing Mistake 4: Greed
Again, K. Scott promptly emptied his bank account to invest in a company as a smooth talker promised him quadruple his money only the week before if he invested in this company, but he only found himself swaddled with a debt that nearly ruined him.
Greed and puffed-up ego as he was in front of a large audience cost him dollars. It is wise not to allow any mouth-water person to massage your ego. Listen to the person on investment and wait before you make your decisions on investment.
Common Investing Mistake 5: Ignorance
I learned as I read the local paper ago that people lamented their woes and defeats, and they complained that they lost thousands on internet investment programme or the other because they thought the money would just come out of the computer like ATM after they paid ten of thousands to the people in the name of seminars.
Ignorance wipe out their capitals and leave them financial drain. They lost thousands in the (stock) market because they swallow nails and stones from their friend(s) quickly without studying what is investment money is s how it works. That is what we call them ignorant.
Common Investing Mistake 6: Mental Poverty
Many investors think they are smart, and they do not need to attend seminars, but they lost a lot of money to discerned investors because they do not acquire enough knowledge from seminars.
I told my friend to go and sell share of bank stock for N45 per share to make up to N300,000 he bought it for N10 with N50,000, but he refused because he wanted dividends every year for life as soon as he found that he received N5000 as interim dividend and N12000 as final dividend for the first time.
And I left him alone because he wants dividends for life but he forgot that it does not make him rich if he depended on only one stock for dividends or if he doesn't use investment strategy that can make him a millionaire. He was not a millionaire because he has a problem with his mentality. He should have millions of naira now if he had read about investment widely.
Common Mistake 7: Rely on Guesswork
One day a young adult in this country came across a columnist on investment in the local paper and then asked him what stock to buy, and the columnist gave him ten stocks to pick up it to buy it, but the young man asked him again which stock is better that would make him a millionaire. Then the stock market columnist gave him three stocks out of ten stocks to buy it. And the man did it.
But later he found that the share prices of stocks he bought had gone down gradually as he read it in the financial report on stock market prices. And he called him again and asked him about it, and the stock market guru told him not to worry because it would rise again.
But share prices still falling down made him worry and called him and asked him what happened to three stocks in the stock market, and the columnist didn't pick his call up. He refused to answer him on the phone. And he blocked his phone number off from him. And the young man lost on the stock Exchange because he depended on guesswork for help without investing in himself. And you should not do it.
Final Thought
The lesson learned from people's common mistakes in this article help you reduce your mistakes and plan for the next time. It will save you time and efforts and make you a fortune as a trader or an investor.
I hope you find this article useful? What do you think if you read this article? Do you want to say something as you experienced it before? Please drop your comment here and we appreciate it.
Happy viewer! Happy investor! Stay tuned with us for the next information.
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