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IcerocketInvestors are wired to make the wrong decisions. Especially in a difficult market, people sell when they should buy and invest when it's time to sell. Stuart Kruse, founder of Kruse Asset Management, a prominent Chicago-based investment house, details 5 common investment mistakes that will cost you money:
1. Panicking. Despite the financial "crisis" which is affecting very specific firms, the world is not coming to an end. Most financial stocks are actually doing well since the July 15th lows.
2. Selling. When the markets are in a long decline it's easy to believe the decline will never end, so most people have the urge to sell. But, just as markets don't rise endlessly, they will not fall forever. Be wary of selling just before a market upswing.
3. Not buying. If your favorite wine was on sale at a 30% discount, wouldn't you want to buy as much as you could? Stocks are no different.Warren Buffet, arguably the best investor of all time, buys during crisis, and today, he's investing billions in the firms many are running from.
