Investment is not rocket science and the decisions you make or do not make while investing will lead to the returns (or the lack of it) you see in your investment. There are unwholesome things that some supposed investors do when investing that are counterproductive or that will eventually lead to negative consequences. Here, we will take a look at those unwholesome mistakes that investors should avoid so as to make their investment to count.
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1. Having impatience
It is worthy to note that a good investment should not be seen as get-quick-riches system, otherwise it will just become another type of ponzi that will end up making away with people's funds after promising them the whole universe. A good business should be nurtured with time and made to grow. When a farmer grows his crops for example, he will not be uprooting it daily to check if it has start germinating, he has to give it time to germinate, grow, and then bring forth fruits before it can be harvested. In the same way, investment should go through the growth and maturity period too.
You need to keep your expectations realistic when investing. Expecting outrageously high returns on your investment will make you to grow impatience and the aim of the investment will be defeated. In crypto investment for example, expecting your coin to do a 1000x in a short time will be expecting insanely much, and scammers may leverage on your greed to perform bad actions on you. Whenever you are to invest, have patience in mind.
2. Not diversifying your investment
Many investors have had their funds go down the drain simply because they centralized their entire funds in just one investment. It is alway advisable to diversify your investment into many sub-investments. The reason for this is; if one of the investments go down, or if one is not doing as expected, there are yet others that may be doing well. But if your entire life savings are in that one that is not doing well, you can imagine the kind of tension that it will bring to the investor because the person's life savings are at stake.
Even in the crypto space, when you want to invest in coins, it is alway a good practice to distribute them through various projects and coins, not just in a particular coin. With the unpredictability of the market, it will be a dangerous risk to have all your investment in just one coin. What if the coin pulls the rug or what if it dips massively? The investment would be crushed. This is not limited to the crypto space alone, they can also invest into other business to have a secondary stream of income and to cushion the effect of unforseen situations.
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3. Mixing investment with emotions
One of the major undoings of many people is the fact they they allow their emotions to becloud their sense of reasoning during investment. Emotions cover a whole lot of things; like anxiety, greed, fear, etc. With emotions in business, the person's analysis may be skewed. In the crypto space for example, someone may become emotionally attached to a particular coin so much that the opportunity to take profits will come and pass them by and they will still hold on to the coin, and at the end, it will dump on them.
Instead of allowing your investment decisions to be based on emotions, let them be based on proper research - Technical and Functional Analysis, and then observe and monitor the market for trends. A friend of mine once dropped a humorous quote in relation to emotions and crypto investment, and I will conclude with the quote:
Don't get emotionally attached to any coin, you're not the dev. Even the devs take profit too.
Thanks for reading