Every person investing must want to be profitable, not lucky. But like life, the path of investment is not always smooth. There must be a risk, and sometimes you have to suffer losses due to several external and internal factors. One of the things that makes investors lose is the result of their mistakes. If not avoided, these mistakes can actually impoverish investors. Here are some investment mistakes that investors shouldn't make or should avoid if they want to make a profit.

1. Want quick and instant profit

Investments or investment activities will provide maximum benefits if carried out in the long term, more than 5 years. Unfortunately, many investors, especially those who are just starting out, are impatient. Want to make quick and instant profits, so investments are made in the short term. Usually only a year, some even less. Usually a short term investment, the risk tends to be greater than the long term. Investment returns are susceptible to inflation, because the value can be lower or equal to the annual inflation rate. Meanwhile, investors can get returns that are higher than inflation if the investment is carried out in the long term.

2. Just doing it with no clear purpose

Millennials are now investment literate. Literacy just wants to join in on investing. Let it be called contemporary. But it doesn't actually have an investment objective. Finally, as long as you choose an investment instrument. Do not understand and understand what and how these investment instruments work. I don't know the risk. The important thing is investment, can make quick profits.

3. Want big profits, but small risks

There is a term high risk, high return. It means high risk, big profit. Means that the risk is directly proportional to the investment return. If the investment risk is low, generally the profit is thin or small. Some investors, especially beginners with the characteristics of fast and big profit, but small risk. So it's easy to be tempted by the lure of unfair returns from investment companies. Finally got into the trap of illegal investment. The money that had been invested was taken away by the owner of a fake investment company. It's not that you get a lot of money, you even lose a lot of capital.

4. Invest in only one instrument

Another mistake investors make in investing is not diversifying. Only dwell on one product or instrument. Diversification can help protect your finances, if at any time one of the investment products experiences a loss or profit that is not optimal.

Choose another instrument to complement. For example, if you have invested in gold which is known as a safe haven, look for other investment opportunities that are more challenging, high risk, but also have a large return, namely investing in stocks.

5. Haste in making decisions

Anything rushed, usually ends in disappointment. Likewise in making investment decisions. Consider carefully before moving on, for example before deciding to sell or buy shares, put more capital in mutual funds, or others. Do the analysis first, so you can carry out investment activities at the right time. Get the maximum profit, and most importantly, don't make a wrong step that will make you go bankrupt.

Source: Kompas.com