Mistake #1
Over-monitoring your Investments
This is one of the most common mistakes that many investors make, rookies and veterans alike. And the more volatile the markets become, the more over-monitoring takes place. The world of investing seems at times to be so uncertain and full of surprises that many investors think that keeping a very close watch on their investments can help warn them of impending danger.
Unfortunately, the opposite can often be true. When we engage in daily, or even hourly stock-watching, and feed our minds on an endless diet of business reports and market quotations from the radio, TV, the web, and print media, what is really happening is we are keeping ourselves in a constant state of heightened anxiety. This puts us in an unstable and fearful emotional state of mind, and primes us for making bad decisions in reaction to sudden market developments. In such an emotionally nervous state good decisions are rarely made.
Solution: Go on an "Information Diet" - restrict your intake.
An experienced Advisor helps you "Just say NO!"
Mistake #2
Following the Herd
This common mistake comes directly from committing Mistake #1. As you're allowing your mind to constantly feed on what is being served up by national, international and business news media, it is extremely difficult to not become saturated with the emotions of the day, whether they're doubt, fear, or over-optimism. It's true what they say, "You are what you eat," and when you ingest this much emotionally-charged business news you'll ultimately be influenced by it.
When finally a clear group trend begins to emerge, which is almost always driven by these heightened emotions, a stampede often follows. The "Herd" moves, either buying or selling en mass, and you move along with it feeling there's safety in numbers.
Solution: Have a solid, long-term investment strategy, and stick to it.
An experienced Advisor helps you plan and stick to a solid strategy.
Mistake #3
No Clear Investment Goals
Someone once said, "If you don't know where you're going any road will do." Or said another way, "If you aim at nothing, you'll probably hit it." Without any clearly defined and measurable investment goals, it will be impossible for you to know if you are on track with respect to your targets..., because of course, you have no targets.
For example, a clear goal would be, "the ability to pay for my child's education in 10 years time." This is a clearly defined goal, with a measurable monetary target and a clear target date. Assessments done at the 3-year, 5-year and 7-year marks, will give good indications of how on track you are and if corrections are needed. However, having as your target something as vague as "making a lot of money" or simply "doing well on my investments," leave you in a cloud of ambiguity and vulnerable to the influences of mistakes numbers 1 and 2 above.
Solution: Write down clear investment goals with measurable targets.
An experienced Advisor helps you define clear, measurable goals.
My Personal Pledge to You
Dear Friend:
With a degree in Economics from Carleton University, industry certifications, and 26 years of hands-on experience in the fields of finance and investment, I have a wealth of knowledge and experience I would like to offer you as your personal financial advisor.
I pledge that I will always do my very best to serve you with the utmost skill, integrity and professionalism to help you reach your financial and investment goals.
Please call me today at: 613.224.5074
or email me for an appointment at: jarmiento@yourCFOinc.com
Sincerely,
Jim Armiento FCSI
Branch Manager
Senior Financial Advisor
yourCFO Advisory Group Inc.
Ottawa
