Large number of reasons contributes to make investment decision a mistake. Most of the time decisions have been taken in an atmosphere of uncertainty which further downplayed by market leaders. However, emotions should not come to play any role while making decisions regarding investment.



And if the emotion starts influencing investment decision the basic principles of investments are compromised.



Here are few basic tenets of investment you should follow.



1. Investment decisions must be taken within an unquestionably distinct Investment Plan.



2. The division between Asset Allocation and Diversification is often cmpromised.



3. Patience is another pillar of investment. Investors become bored with their Plan very soon.



4. Investors always tend to trade in securities that rise in price and forget to take profits.



5. Investors are often overindulgent on information that causes indecisiveness and confusion to roll in.



6. Investors are always in incessant search of quick money with just little effort.



7. Investors just are often confused regarding the nature of Interest Rate Sensitive Securities and they just can not cut a deal adequately.



8. Many investors often buy popular securities running at all time high prices. Wait for the cycle to roll low.



9. Many investments are not compatible with time.



10. Cheaper the better concept should not rule you decisions.



Read More