Whether you’re a sea­soned in­vestor or just start­ing out, here are some men­tal pit­falls to avoid.

Simply Her (Singapore) - - Help Your Hubby -

• BE­ING AFRAID TO LOSE MONEY Says Con­stance: “It’s okay to make some mis­takes when you start out. That’s why the money you use should be money you’re pre­pared to lose – out­side of your emer­gency funds.” She adds that on aver­age, people take about three to six months to learn in­vest­ing. • NOT BE­ING PRU­DENT ENOUGH Be­fore you in­vest in a com­pany’s stocks, at least read its quar­terly or half- yearly re­ports to see how it’s do­ing. Con­stance says: “A com­pany’s bal­ance sheet, and profit and loss state­ments, are pub­lic in­for­ma­tion. Read up on the back­grounds of the people who run the busi­ness too, to find out how they work and what they stand for.” • FALL­ING FOR GET-RICHQUICK SCHEMES Sandy says: “Of­ten, we see news­pa­per ads that of­fer cour­ses on wealth ac­cu­mu­la­tion or how to get rich quick. Ask yourself: ‘Is this trainer some­one from the in­dus­try or an am­a­teur who’s picked up some skills on his own?’”

He says it’s im­por­tant to make this distinc­tion, be­cause even if the train­ers have made big bucks, it doesn’t mean they’re qual­i­fied to give fi­nan­cial ad­vice. “Al­ways turn to a pro­fes­sional fi­nan­cial ad­viser and don’t be swayed by the idea of mak­ing a quick buck,” he adds.

Newspapers in English

Newspapers from Singapore

© PressReader. All rights reserved.