There are complaints from lots of guys that there investments are big failure. They are doing hard work and following the steps advised by analysts and others but, still not getting the required results. There investment money shrinking in a day to day basis. What are the reasons behind this failure? Today, we are digging into the major factors that lead an investor to a big failure with his investments instead of great success. Read the article below to know the most common mistakes an investor committing to make his investments to a big failure and assess your self to identify and avoid if you have such mistake or character that a good investor should not have.

Meaning of the word “Investment”

If you take 100 investors and ask them the meaning of “Investment”, you will not get proper answer from all 95 people out of 100. How can you use some English words without knowing the proper grammar and especially if you are from an English speaking country? An example is, you want to have food after 2 hours. Can you say “I had food after two hours”? You can’t. It is because there is no meaning in that sentence and if there is one, it should be a misleading one.

“Investment” is a super word. One who wants to use the word “Investor” should properly understand the meaning behind it. Or, this can lead you to a trouble. Some traders, I mean short time traders, proudly saying that they are investors. Are they investors? No. But, they are traders. An investor is a person who has a solid plan or goal in his mind to achieve by doing proper action and wait patiently. The meaning of ‘proper action’ can be a study about the road he can use to invest his money or it can be an investment decision with multiple products that can give him proper appreciation after a period of time to achieve his goals. A good awareness on the exact meaning of “Investment” is the preliminary requirement for one before he starting any activities related to investing. Or you will be a coward in front of proper investors.

Lack of preparation

I will start with an example. You are planning a super vocation to go to Amazon jungles and rivers (which is my favorite place to visit at least once in my life). Will you pick your bag at the same moment and start your journey to the jungles? No. You will not. Then, what you will do? You will start drawing a detailed plan about the required preparations, travel facilities, arrangements required at the spot for food, stay, dresses, transport, tools and the plan to visit all possible places within your time limit. Then you will think about the source to have all this. I mean money. You will compare the cost for the above with the money that you have in your hand. If everything is OK, you will proceed.

Investment is also like that. You cannot directly go to the stock market and buy any share available there at that time. If you do so, you are going to be a big loser. In stead, you have to identify, work, confirm the profit possibility and all the positive and negative factors associated with the decision before making any move. Lack of this preparation is another major factor where investors losing there money in the investing field.

Greed

Greed is dangerous. Everyone should have a thought in mind that, he required to leave this earth by today or tomorrow. When such happening, he can’t take all those money he collected in this earth. Money is good for standard or well standard life. But over money doesn’t give any value to anybody. You can take the example of legend investor Warren Buffett. He had lots of money and he was number two in the list of most richest persons in the world.