All the eggs in one basket

All the eggs in one basket

 

You have all your investments tied up in one major investment and no diversification. For example, if you have all your money tied up, lets say, one major property investment,you will be in a high risk position. What happens if your investments does not pan out ? Your entire investment portfolio for yor future and everything else than fails due to being tied up in this one investment.

There are many who advocated that diversification is a safe policy when it comes to investments. if one of your eggs in one basket fails, you then still have other to use as back up.

Bad timing

You have gone into an investment at the wrong time when it is parking rather than when it comes to investments. We will be covering this more in detail when we talk about economic cycles. Just because you or your children have suddenly read or been educated on investment does not mean that now is the right tme to enter the markets. Be patient, and don’t rush. Figure out the best time to go in when prices have dopped a little and buy when it is lower.

Flying blind

You have no understanding of the sign of the recession and boom economic periods and are investing blind.

Most people have very little understanding of the economic periods of recession and growth and do not know how to read the signs or read government reports that indicate when we are heading for a recession. These people are in a dangerous place because they can get caught with the wrong product at the wrong time.

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