5 mistakes you absolutely must not make before investing

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You are finally ready to invest your savings, but you still want to know which strategies can prevent you from effectively achieving your investment goals . In this regard, in this new post, we want to clarify what are the attitudes that allow you to conduct your investment activities in the right way.

Unfortunately, in our country, financial culture is not very widespread and there are many savers who rely on improvised DIY, overestimating their financial knowledge and incorrectly managing their investments .

Making errors of evaluation, rather than strategy, especially if you are inexperienced on the subject, is normal. However, in this area it is best to avoid making the same mistakes over and over again as the stakes (capital) are very high. 

The most common investor mistakes and why avoid them

1. Have no financial goals

When it is decided to invest there must be no hesitation about the investment plan and the objectives related to it, which must necessarily be defined and observed for the entire duration of the investments undertaken.

Without goals, it is very easy to take the path of default rather than success.

Awareness of the extreme importance of what we have just told you depends a lot on your financial culture. However, know that financial culture must be constantly nurtured and that reading two or three newspaper articles is not enough to say that you have it. Instead, it is necessary to read and get information on a daily basis.

2. Don’t consider the relationship between risk and reward

Risk and reward are factors that travel in the same direction. With this we want to tell you that the greater the risk you are willing to take, according to your possibilities, the greater the gains that your investment can produce.

Believing that quick and easy gains lie ahead is the most erroneous belief you can have . Anyone who makes you believe that with a snap of your fingers you can make great profits is a braggart.

Despite this, there are still people who are firmly convinced, wrongly, that you can somehow circumvent the risk by making money in all simplicity. Instead , you must always make realistic considerations: if you want to increase the value of your capital you must opt ​​for riskier investments.

3. Get influenced by the media

Very often it happens that investors get information through the media to formulate their own analyzes on the investments to be made. An attitude that has very little rational, if we keep in mind that TV and newspapers launch alarmism or on the contrary news full of positivity linked to purely media logics that can distract the investor from the investment objectives.

Therefore, one of the mistakes to avoid in investments is to act without listening to your own head and allowing yourself to be influenced by external information, especially that conveyed by the media.

4. Don’t diversify your portfolio

One of the most common investment mistakes among investors is that of not knowing the potential of diversification. Financial diversification

refers to the strategy of allocating one’s investment capital to multiple financial instruments rather than concentrating it in a single option.  The advantages of this practice are many, starting from that of reducing the risk to which you expose yourself . In fact, by varying your investments the risk of your portfolio will decrease, preventing the negative performance of a single investment from completely eroding your assets.

5. Don’t inform yourself 

Before investing in any financial product, find out about it through the information documents presented to you. By informing yourself, it is necessary that you maintain a critical evaluation of what is said to you. If you have any doubts, do not leave them unresolved, but ask the intermediary who offers you the investment for clarification.

If you cannot fully understand the information contained, even after asking for clarification, the advice is to let it go , rather than go into unknown activities and therefore complex to manage.

Become a lender with Ethical Return and support the real economy

Ethical Return was born in April 2019 and is a real estate lending crowdfunding platform with which we wanted to support real estate transactions belonging to a very specific category of loans: NPLsNPLs,

Non Performing Loans , are credits that debtors are unable, for economic reasons, to repay to creditors. The latter, in most cases, are banks. The ethical aspect is what characterizes our business. At the same time we wanted to create and carry out an activity that could generate value and well-being for as many subjects as possible, without exception.

1.     Real estate operators. Starting and supporting any real estate project today is somewhat complicated as the necessary funds are not easily available, especially if you turn to common credit institutions. Ethical Return was created to help real estate operators to obtain what they need much more easily to carry out their projects and set the real economy in motion .

2. Troubled debtors. People who unfortunately risk having their home sold off at auction will find it difficult to pay off their debts in a short time, even after the sale of the house. We enter into negotiations with the creditors with the professionals of Case Italia and Rerò Etico, avoiding this from happening, eliminating the debts of families in difficulty. 

3. Lenders. We give many savers the opportunity to earn by supporting ethical real estate transactions , starting from small amounts and diversifying the loan according to their needs.

Ethical Performance is growing day by day, so much so that today it has almost 13,000 subscribers.Read all the data and curiosities.

This is the clearest demonstration of how much people believe in the reliability of our platform and in the seriousness of the real estate projects we decide to support .


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