Valuable Insights: 5 Investing Mistakes (to avoid)
Our free information brochure shows you some serious investment mistakes to avoid:
As an established asset management firm with more than 20 years of experience and over 1,000 clients, Genève Invest is one of the most respected representatives in the financial industry.
These decades of experience enable us to provide you, as a private investor, with valuable insights into the field of profitable asset management – first-hand.
Building capital assets takes time, effort and knowledge. The same applies to management. We are happy to pass on our knowledge to you in this information brochure.
Don’t let losses slide…!
While small gains are taken far too quickly, bad investments that are in the red are often held on to for far too long, which can result in enormous losses of assets. To a large extent, this is also psychological.
After all, the liquidation of a losing position means defeat, which is only actually realised when the losses have been realised, and the chance of recovery has thus been lost. “Until surrender, the battle is not yet lost”, as not only commanders but also investors too often try to convince themselves. The losses, therefore, continue to grow.
It should be borne in mind that a position that is down 10% must rise again by a good 11% to reach the starting level. If a share has fallen by 20%, it has to increase by as much as 25% to avoid losses, and if it has fallen by 50%, it even has to double. Some investors even get their hopes up at a 90% loss that the tide will finally turn for the better.
In order to avoid this state of affairs, investment decisions in securities that slide (more clearly) into the loss zone should be checked particularly thoroughly, and, in case of doubt, the emergency brake should be pulled in good time. In most cases, price losses that exceed the overall market have a lasting reason, even if this is not yet clear to the investor concerned. In any case, an end with horror is better than a horror without an end.
READ MORE IN OUR FREE BROCHURE
The Genève Invest Group has been successfully active in the field of asset management for many years, offering you valuable insights into the capital market. Read in this brochure about the mistakes you should avoid at all costs and how you can make your investment safer.
Strategically resist short-term profit-taking!
In a world that is changing ever faster, security and reassurance are important basic human needs. This is also reflected in the stock market behaviour of many private investors. Particularly in uncertain times and in rather weak stock market phases, many investors therefore tend to hold on to or secure gains once they have been made.
The easiest way to do this is to sell stock and bond positions that are – even if only slightly – in the black. Often, therefore, even small profits are realised far too early. Similar to winning the lottery or casino, the associated dopamine release in the brain can promote feelings of happiness. At the same time, the investor receives confirmation that he has done everything right, and thirdly, a sense of security sets in since the invested money is now “protected” again in the current account. Of course, this overlooks the fact that the funds have to be reinvested in order to generate income, and the supposed security is, therefore, only very temporary.
Investors should be aware of these correlations and hold good-performing positions until the originally set price target or fair value is reached. Of course, this only applies as long as the assessment of the respective stock has not changed to the negative.
At the same time, you should always be aware, also in connection with possible advisory clients, that frequent reallocations are by no means to be equated with the consistent action of an active investor or asset manager, even if they suggest this. The resulting transaction costs (“back and forth makes pockets empty”) should not even be mentioned here […]