Million dollar mistake #8
Investing in the things one is not acquainted with and absolutely does not understand. This is the case of gossips and “left trains”. This money train has left long ago… but you still think this was the only option… - wrong! Sometimes you get that weird feeling that life is passing you by, and all the opportunities are flying with the speed of light and you are unable to catch them. We are people, we all get that! You also see, that you neighbor Bob has bought a new car and is extremely proud of his last investment which you have no idea about. Remember the proverb “the grass always looks greener on the other side”? So, you think if Bob managed to get a new car, he is smarter than you, and he is smart enough to trust him, and in the end of the day, you end up blindly following his example. Now this is the worst that could happen… You not only gave away the control of your investment based on Bob’s opinion, but you also tried to catch Bob’s money train, that has left long ago… and you end up on a losers train the ones that are trying to scramble the leftovers… This is not the worst case scenario, having in mind that Bob is your neighbor and probably, but not surely, likes you a lot.
Is there anything worse? Yes, much worse – an investment based on rumors? Someone said something that you have heard in the bar while playing pool… We have all seen this movie, the guy got killed after placing his bet on the horse he heard spoken in the bar bout. Throwing your money without any understanding, just because someone sometime ago made some profit is a sure way to restrain yourself from being wealthy and more probable end up poor. Relying on luck and chance is the casino way, not the mind of the millionaire way
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