Investment is a very responsible job, it is hence that Scott Tominaga a veteran in financial services suggests that one ought to be smart and judicious in putting their money out in the market. One of the biggest mistakes he points out is to follow in the footsteps of family and friends.
This happens because of the attitude of following a tradition. When someone makes an investment and gets a good return from it, they usually recommend it to their kin and friends, who without asking any questions, also invest in the same platform. But what they forget is that market is never the same. The shares of an organization may do very well in the market on one day and fail miserably on another. There is always the risk of rising and falling that should be taken into account by an investor.
Scott Tominaga, therefore, takes it upon himself to point out the common mistakes made by investors to warn against the probable downsides they might have if they do not avoid such mistakes.
Not researching well
While trusting relatives and friends is a good thing to do, but when it comes to investment, no chances should be taken. It does not mean that the people around are not trustworthy but that the market is always susceptible to change. No one can guarantee that what yielded a good profit one month back will bring in the same revenue again. It is thus mandatory to research the market thoroughly to understand which is the best place to invest. As a preventive measure one should seek the guidance of able professionals such as Scott Tominaga who have a fair idea of where and when to invest to get the maximum profits.
Not diversifying the portfolio
A very common proverb that fits perfectly for investment is to ‘not put all your eggs in the same basket. This is the best approach when considering investing. Any investor should always consider investing in various places so that the money does not remain confined and at the mercy of a single investment tool. Diversification of a portfolio is particularly good for those who are new in the field. The old investors can still think of concentrating their investment in the same unit but the novice should warm up by having a diversified portfolio.
Lack of patience
One thing that every investor, new or old must have in large quantities is patience. There are no shortcuts to earning money and especially with the share market there is no other alternative to yield good profits. But one thing that the investor should do is demarcate realistic and achievable goals. Having this as a plan one is sure to bag some high-end profits without much difficulty.
Thus, by following these directions given by the financial services expert Mr. Scott one should be able to get the desired results of investing their hard-earned money. The process of investment is purely for individuals to save their money for the future and secure their life after retirement and so investing wisely is an important thing to do.