Published On: Thu, Dec 24th, 2015

Why are People Still Making Bad Investment Decisions?

The world of investing is very much the land of opportunity. It’s viewed in the same way that a lot of different countries view America. A place where the streets are paved with gold and anyone can become a star. And, to an extent, this is true because investing can be the making of some people. A lot of people, probably even people we all know, have enjoyed a lot of success from investing.

unhappyIt was for so long thought of as the playground of the rich and carefree. But in recent years investing has become much more common and popular. In spite of this, people continue to make bad investment decisions every day. In fact, a recent news piece at http://www.theglobeandmail.com/ suggested bad investment habits to kick in 2016. This indicates that there are a lot of mistakes being made across the board. So, it’s important to look at reasons for these bad decisions.

They Don’t Understand What They’re Investing In

Perhaps the biggest one is that people are maybe unsure of exactly what they’re investing in. This is incredible because there are so many resources like http://alternativeinvestmentcoach.com/ available. People can use these to understand how their investments will work. But, because the world of investing promises so much everyone seems to want a piece of the pie. The problem is that this leads to people rushing in to try to get their investments sorted as quickly as possible. A consequence of this is that they don’t really understand what they’re investing in. And, as such, they don’t really get how the process will work.

Investing for the Wrong Reasons

Another problem that a lot of first-time investors seem to make is that they invest for the wrong reasons. For many, investing is seen as purely a way to make a quick buck. In reality, this isn’t the case, and doing anything just for the money is a recipe for mistakes. It’s important for anyone wanting to invest to think about why they are investing, and what they want to achieve from it. Investing for the wrong reasons should never be advised or recommended, and yet people continue to do it every day.

Don’t Take Their Time

It’s also pretty clear that people don’t always treat investing the way it should be treated. It’s meant to be a long-term opportunity to generate some extra financial stability. The trouble is that we live in a word where people want instant gratification. As such, they don’t want to take the time and effort to make sure they get a good return on investment later down the line. A lot of them just want to choose the quickest investment opportunity they can. And, as such they make bad decisions about what they’re investing in.

Taking Bad Advice

Something else that plays a major factor in this is people taking bad advice. And this links to the ‘grass is always greener’ mentality. People will run into friends or acquaintances who have “won big” through investing, and they will become envious. They will ask their friends for tips and advice, and make decisions based on how others have done. This is the easiest way to lose money quickly. It’s one of the most common reasons why people are still making bad investment choices.

It’s pretty clear that even these days people are still making bad investment decisions. And this is a shame because investing can be a really lucrative venture. It can also be exciting, and teach people valuable lessons. But a lot of people get put off by the bad decisions they make, and this makes others more reluctant to invest.