When it comes to investing your money, learning from other people's mistakes is very important.

Here are 6 common mistakes investors tend to make:

Putting All Your Eggs In One Basket: you should always diversify. What works today may not work tomorrow, so try to have a well-balanced portfolio. Putting all your trust in one stock can lead to devastating results.

Not Having a Plan: you have to be very clear about the reason you are investing. It's very important to set your objectives from the start and be very specific about your goals. What to you expect from your investment? Do you want to earn enough money to buy a house or a car? Do you have short term or long term goals?

Trying to take shortcuts: the get-rich-quick mentality rarely pays off. Following a solid long term policy may not make you a millionaire overnight, but it will give you steady profits.

Not Using Your Own Judgment: it is one thing to get professional advice and a completely another to leave all the decisions up to the "experts". Seek guidance from someone who has expertise in the field and listen to their recommendations, but keep in mind that the final decision about any investment should be only yours.

Letting Emotions Take Control: when the market drops some people succumb to fear and sell prematurely. Greed is also a problem, because you may end up buying stocks that aren't worth their price.

Lack of Dedication: many people get really excited at first, but give up when they meet any obstacle. Always make your investments for the long term and continue to do whatever it takes until your objectives are met.

To become a successful investor you don't need much money. One of the best markets to make money out of a small investment, is the forex market. If you use it right you can see monthly returns of at least 100%.

Saturday, March 7, 2009

Invest to Earn Extra Money

Specially for those who want to earn legitimate earning with small investment.