Usually the most common mistakes are the most obvious. Online investor’s continue to be undisciplined failing to have a plan, understand risk and match the timing of the market.

Having a plan is essential to any worthwhile endeavour. Benjamin Franklin so eloquently stated …

If you fail to plan, you are planning to fail!

Let’s envision arriving at the airport, the ticketing agent asks you where you’re flying and you respond with something vague like “I’m really not sure”. In essence you have no direction and could end up in Antartica for all we know. Not that Antartica is a terrible place if you’re dressed for icebergs. Such is the folly of not having a plan as an investor. Online investor’s have more of a DIY approach, so it takes even more discipline for this group of investor’s to create a plan.

In our video game, Internet-based culture, we sometimes don’t place enough weight on the true risks of our investment decisions. After making a mistake as online investors, we imagine having the ability to hit the reset button to restart from the position where we began. Unfortunately, this is a delusional perspective to have where serious monetary losses can be incurred. Online investing sometimes erroneously lends itself to a gamblers mentality which involves impulsive and reactionary card plays instead of executing a well thought and stoic plan.

Read the full article here from the Winnipeg Free Press, including additional tips on online investor planning, risk assessment and market timing.

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