The world of investing is one in which you can never fully eliminate the risks, as many new investors are quick to find out. However, by making better decisions and, more importantly, avoiding bad ones, you can minimise the level of risks that you take. Here are some suggestions for improving your odds of making successful investments.
Mistake 1: Focusing Too Strictly On Yield
New investors often have the misconception that investing in high-yield stocks is the safest move. This is not always the case, and in fact, sometimes the fact that a stock is high-yielding can be a warning sign as easily as it can be a sign of potentially high profits.
Focus on a company’s prospective growth, rather than on current stock yields. Frequently, the most reliable stocks are those of companies that are experiencing strong growth while consistently increasing its stock dividend.