There are certain questions from people about investing their money on individual stocks, the economy, the market and even the research opinions of people like Chris Linkas, the European Head of Credit. People who want to invest their money should always be aware of five investment strategies which are not so common to the average investor. In this way, they will have no doubt about the financial decisions they make with their hard-earned money.
Yes, your fund manager and professional investors can access massive financial information and data. You may think that they know everything about making profitable investments. But the market is still greater than all of them combined. That’s why most fund managers commit big investment mistakes. So, don’t just believe them. Do your own due diligence as Chris Linkas would.
2. Don’t get burned on a stock forever
Many investors, when they lose on a stock, will turn away from that stock forever. This is a mistake. If you do this, you will reduce your field of investment unnecessarily. You must understand that the only permanent thing in this world is change. That is also true in the stock market (http://www.spoke.com/people/christopher-linkas-fortress-3e1429c09e597c1006eb4661).
3. Safe stocks are also vulnerable
So-called defensive stocks can also be affected by adverse stock trends. When there is a shift in the market, these types of stocks are also liable of taking big and massive hits. This happened in 2015 when some preferred shares performed very badly in the stock market.
4. Don’t believe every take-over rumor that you hear
Rumors of takeovers are a plenty as Chris Linkas, an investor in real estate knows. Takeover rumors have been going on for many years, and yet there are investors who still own one thousand various stocks. Perhaps there are a few rumors that will come out to be true and take overs may happen. But most of these rumors will not result in take overs.
5. Don’t trade because of news events
Many investors trade their stocks because of sensational news or announcements. When the news turned out to be fake and the announcement did not come true, they move on and look for another trade.