An investor runs huge risks as the economy is never really stable. It always goes through ups and downs and so does his investments. Many people who are in bad credit borrow money from lenders to invest expecting windfalls that would solve all their financial troubles. However, if things don’t go as they plan, repayment would become a real problem. So, it is important to check if you are at the risk of committing any of these 5 investor mistakes.

Mistake I. Getting emotional over stocks

Okay-you read huge fat books outlining how to choose the perfect stock and then landed in a real ‘gem’. You want to hold it just to prove to all that you were right. That is just where you are wrong! Don’t get emotional over stocks. Sell it when you know you must. This is one place where you should listen to your mind rather than your heart.

Mistake2. Building castles in the air

There are many investors who just keep counting the value of their holdings everyday and gloat about it. Remember, what you don’t have in the hand is not a profit at all. Unless and until you have sold it, you have made nothing. A bird in the hand is worth two in the bush!

Mistake3. Frivolous Spending

I know of an investor who checks his stocks every morning. If they have gone up $100, he enjoys it by spending at least$50 to $70 immediately proclaiming he is going to get it all back. If that sounds like you, then please avoid such frivolous spending or you will very soon end up bankrupt.

Mistake4. Tackle Small things

You might have a vast portfolio of small & big stocks financed by small & big bad credit loans. How you handle each small thing matters. If you pile on various small errors, it would end up as a big loss. So, tackle small things wisely too.

Mistake5. Acting on whim

Knowing when to buy is a big decision and knowing when to sell is an even bigger decision. Do not act on a whim. Read, read and read about the market, economy and the stocks, especially keeping your stocks in mind. Don’t act on whim. Take informed, decisions always.

There is no hard and fast rule about investing. Just remember Warren Buffet’s advice, ‘The first rule to make money is not to lose any`.