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The investment mindset makes you chronically poor, the last type of investment that few people appreciate but DECIDE EVERYTHING

1. Only trust investing in stocks

In addition to saving to become rich, of course you need to invest. In fact, there are many forms of investment not only stocks. Real estate, bonds, stocks… are all good investment tools.

There are many forms of investment, of course, investors cannot understand every industry, let alone the operation of each company. Therefore, when investing, you should only invest money in companies and businesses that already know the information and operating situation.

Warren Buffett is a prime example of success in the investment field. He once said that the most important thing for investors is to understand their range of capabilities. People who are successful in investing only focus on the field they are familiar with and within their ability to aim at “knowing yourself, knowing yourself, winning a hundred battles”.

2. Follow the advice of experts blindly

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Learning and applying financial knowledge into practice is not an easy thing. Many people look for information in books or the media. But experienced market experts with trend analysis skills are also a source for investors to refer to.

However, many investors consider the opinions of these experts as a “guideline” and follow them blindly, may end up not making the money they want due to the volatility of the market. fast.

Therefore, investors should analyze the statements before deploying, plan carefully to have a great chance of beating the market and making a successful profit.

3. Treat securities like a casino

Many investors treat the stock market like a casino and imagine that it is possible to ‘buy the right numbers’ and get rich overnight but end up with more losses than gains.

This thinking is completely wrong because investing in the stock market is a skill to analyze, evaluate the market and the performance of the company. If you leave the chance of making money to luck, you will most likely lose every last penny.

So when investing, managing finances, you should be calm, alert, analyze the market, assess trends, calculate risks and find the most suitable price to own.

In addition, when choosing an investment, you should also carefully grasp your financial situation such as the allocation of savings rate, living expenses and investment money. You need to calculate the details and master the overall plan to have a higher chance of making money.

4. Venture capital

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Brad Klontz, a professor of financial psychology at Creighton University, has pointed out that most people have a “team desire” mentality, which means not only paying attention to what others are doing, but following along. that behavior.

Anyone who talks about investing on social media has the potential to influence the psychology of this group of people. It is possible that the flood of information has brought them into the market to speculate, ignoring the fundamentals and the possibility of risk. Usually these investors will quickly “leave the field” in a state of heavy loss.

So to make sure your investments are on the right track, financial experts have suggested the following 3 ways to start including, focus on the end goal, speculative activity should not exceed 5- At 10% of the total portfolio, investors should build an investment “hump” to give them time to think about their investments to prevent themselves from making impulsive investment decisions.

5. Short-term investment

When a certain information is hyped in the market, followers will tend to enter the market to seize the opportunity to get rich. They can profit in a short time, but when the good news of the market “digests”, it is easy to fall into a loss situation when ignoring the concept of profit or loss cut.

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Investments should therefore be seen as long-term implementations, focusing on the long-term growth performance of the portfolio rather than temporary gains and losses. Over the years long-term investing has repeatedly proven to be one of the best ways to increase wealth, although there will be fluctuations in the process.

Even “stock god” Warren Buffett also affirmed the correctness of long-term investing. Continuously in the top 5 richest people in the world with huge wealth. Many people have come to him for advice on how to invest. His simple answer consisted of only 5 words: “Invest in the long term”. But the magic of this saying is not limited to the field of securities.

When used correctly, Warren Buffett’s five-word advice can help you successfully accumulate and grow your bank account balance.

At the same time, when investing, you should apply a slow but effective strategy to achieve your long-term goals.

6. Don’t know how to invest in yourself

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Investors may consider different products when researching the market but neglect investing in themselves. Investing in yourself and constantly increasing your self-worth is an inevitable and right choice.

By investing in yourself, you can increase your competitiveness, get more opportunities for advancement, and indirectly increase your wealth.

According to Businesstimes

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According to Dinh Anh

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