Mistake

I was talking to a friend of mine today about Investing in general, and he kept on mentioning Real Estate as the safest investment. He also mentioned some other investments, but I wasn’t in full support of what he was saying because I believe there is nothing like a safe investment. Though some investments are risky, some are less risky. No matter how good any investment may sound, you are still likely to make mistakes.

Many people don’t know that investing in real estate also comes with risk. If you don’t do it right or if you don’t have experience in investing in real estate, you are also likely to make mistakes at first or make mistakes later. Some of these mistakes can cost you a lot of money, but making mistakes as an investor shouldn’t be your problem because no matter how smart you are or how good you are, you can still make mistakes.

Mistakes are normal

Most experienced Investor make mistakes every year, but what they do is not let mistakes stop them from continuing their investment journey. It only takes a Miracle not to make a mistake in the market. You will only get better when you don’t stop and you keep doing what you are doing. If you don’t let your mistake stop you it is something that you will get better at it but this is where most people get it wrong because after they make their first losses in the market, they stop completely. They will tell you that the stock market is a scam, Crypto is a scam and also Real Estate is not the best way to go.

People stop investing totally for many reasons and I have mentioned a few in the past, and one of them is being emotionally attached to someone’s money. One of the things you cannot teach people is how to react when they’re losing money in the market. You’re likely going to make a mistake, experienced traders make mistakes. It is the part of your journey that is why it is important to have good risk management in place.

Risk management

One of the things that differentiates experienced investors from a newbie is risk management. Most experienced investors understand that no matter how good something is in the market, there is a possibility that you can still lose money on it. There is always a risk management in place so that if things go south it won't ruin them financially. Some newbie don’t always put this in place which is why they lose a lot of money when they make their first mistake. Mistake is not the end of the world you just have to plan towards it you just need good risk management so that mistake won't ruin you.

Thanks for your time.