The 'seven deadly sins' of investing

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There are many traps that investors can unwittingly fall into. Here are some of the most common mistakes, outlined by RPlan.

This article first appeared on Your Money. Sin no 1. Following fads Fashions come and go in investing, often to the detriment of individual investors. A good example of an investment fad was the 'dot-com bubble' – which was followed by an enormous downturn. Many of the 'dot-coms' became insolvent, and those who had followed the trend lost money. Instead of trying to guess the next 'big thing', create a well-balanced portfolio which will bring you decent returns, at a level of risk level that you are comfortable with. Sin no 2. Thinking like a trader Investing in ‘collectives’...

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