What lessons can you learn from past investment failures?

Understand and define the difference between investing and trading, and the different types of trading styles. Figure out which one fits you. Many new "Trading" joiners switch gears depending on losses or gains, mentally reclassifying profitable positions as short term trading positions, and losing positions as long term positions, which is a bad strategy. They end up cutting winners too soon and accumulating losers for too long. Remember, tied up capital is an opportunity cost, especially when risk-free is 5.5%. If the sum of money you are trading with does not represent a material amount of your worth, where the gain or loss has no significant impact on your finances, then you are not really trading. You are playing on your phone :)

Here are some key takeaways: 1. Diversify Your Portfolio: Diversify your investments across different asset classes, sectors, and geographies to reduce overall risk. 2. Embrace Long-Term Investing: Avoid emotional trading and focus on long-term goals. 3. Conduct Thorough Research: Don't blindly invest in hype or recommendations. 4. Manage Risk Tolerance: Invest according to your risk tolerance. Don't chase high returns at the expense of your comfort level and financial stability. 5. Seek Professional Guidance. Examining past investment failures can yield valuable lessons for future investment decisions.

I have done poorly investing directly in others ventures. At the same time I have done well investing in my own ventures and improving myself to be better. Don't loose site of investing in you?

It's investing...inherently "any" investment has "risk" Thus referred to as "no risk: no reward" Get informed and make moves

100%. Emotions and how we control our human behavior make a huge impact on our success in investing and building wealth over long periods. I have found that by studying the history of the market over long periods and understanding how Mr Market works (market cycles etc.), helps me to put things into perspective and control my emotions. Reading many financial and investing books from around the globe and over different time periods gives great insights.

Emotions and investing should never be in the same sentence, unless the words "don't have ANY" are in the same sentence. Investing is all about knowledge, experience, guidance, and timing. If you don't have the needed knowledge and experience, take the guidance from an expert who does and is proven. Never buy an investment home because it's cute and never buy a stock or home because everyone else is. "Lemmings are Losers" is what a successful investor I know once said. Always know the numbers and the "why" of an investment and the potential upside or down.

Know your market. Not just what the values are in an area but also know what it costs to rehab a flip. I did not take into account the extra cost of contractors in one city as opposed to my local area and it ended up in a loss.

I have been very lucky and have personally done well investing. However, I learned by watching someone in my family lose over a million dollars. The lesson I learned early on is to not manage my own money. I am an expert in mortgage lending, not managing investments. I have had excellent luck in purchasing real estate Investments but I still use a real estate expert to protect myself. So, I would have to say when it comes to large investments of any kind, hire an expert and stay in your own lane. I am grateful I learned this early on in life. It has not failed me yet.

Never underestimate the importance of thorough research and due diligence. It's like dating; you wouldn't *marry* someone without knowing their quirks, right? Similarly, understand the market, property, and potential risks before diving in. Second, resist the temptation of FOMO (Fear of Missing Out). Just because everyone's buying in, doesn't mean it's a wise move for you. Third, don't put all your eggs (or properties) in one basket. If it fails, you've sunk your own ship. In real estate, patience can be your best friend. And remember, even in failure, there's a lesson waiting to be learned, just like in life! 🏡💡

Ideas to Live by with Investing: 1. Read & Study Daily Investing & Finance Daily from various sources 2. Start today, not tomorrow. 3. Know all the rules of their game before you get in. 4. When can I sell if I want to? 5 . When and how can I exit? 6. Who's holding my money? 7. What is my money being used for? 8. Where's the money being held? 9. Why do you need my money instead of getting it elsewhere? 10. Why is your investment the best for me and my goals? 11. How can I trust you? What's your track record? 12. Pay attention to your gut feeling 13. Research, Research, Research

After three years of PhD research on some of the largest funds on the planet, I realised the importance of diversification for resilience and long term risk adjusted returns. What is often overlooked is the degree of diversification and risk appetite. We are living in times of great Hype and techno babble, even the biggest smartest investors get punked! The first question to ask is what are the expectations, would you be happy with 3-5% returns per annum? If not you will need to adjust your risk appetite. Secondly diversification will require investing in completely different asset classes, therefore investing all your money in shares is not diversification. Prudent investment is the way forward.

There is no such thing as experts but there is wisdom, a 20 year old on Youtube may make money on FX and crypto but is it sustainable? The financial crash of 2008 and the Pandemic should be proof that anything can happen. Having said that I would start by reading books and following the guidelines by governing bodies to identify current risks and scams. Understanding Risks is very important, there is no such thing as guaranteed returns anymore. Knowing the rules of investments and tax implications are also important. Take different perspectives and strategies and decide which is more suitable for you.

Do not enter into any program that says they are going to be there for you, because they will not. Fortune builders, was a huge mistake and biggest waste of money. If you want to learn how to invest in real estate. Ask real estate professionals, like agents that have investors as clients, mortgage people that deal with fix and flips as well as fix and hold properties. Live and learn, is what I got from the experience.

Over my investing career I have often successfully identified opportunities in start ups or companies with expansion plans. But I too often underestimated the amount of time it would take them to occur and how long it would take the stock price to recognize them. So, long story short, I sold to soon only tomiss the opportunity I had correctly identified. If you have done your research and land on a stock ask yourself how long it will take it to perform. And then double it.

Start by reading books! This will give you a picture of the investment landscape and the colourful characters that either made money or lost money, or both. Again seek the advice of professionals first before you turn to a get rich scheme channel or becoming part of a Ponzi-Scheme. Mentorship is always beneficial but it has to come from the right place.

Choose who you want to learn from. I failed to understand learning from who I thought would be the best person - my Mum would result in my first mistake. She posed upon me her way of investing but did not understand about markets, cycle of markets, how to reduce risk and a bigger picture of investing. After losing money on my first investment I had an opportunity to learn from a mentor, not only did he share his experience but could provide guidance around better investments and strategies. All mentors will have their own unique experience however it does not necessarily they are right for you. The one who is able to provide you solutions specifically for your situation are the best.

I think we all suffer from panic selling or 2nd guess our portfolios, but I think if we do our homework efficiently and, when prices drop, we REMEMBER that we did so, I know I can shake the willies and trust my reasons for investing in the 1st place.

Investing mistakes can take many forms. One situation I see people struggle with often is when or if to sell concentrated stock positions. Often this may involve RSUs or stock options. Investors view mistakes in this area as not selling stock soon enough when a stock then loses value or selling too soon and then watching the price go up. A good exercise here is to evaluate how you felt in each scenario. Would you be more adversely affected if you sold too soon and the stock went up or would you feel worse if you continued to hold and the price declined. This exercise can help you determine your views on the risk of either scenario and hopefully give you some peace of mind when you are making decisions.

Investors are low on inventory and paying above prices at the court house. Since covid when everything came to a halt. The institutions had a back log of things in the pipe line now it is coming back.

Be mindful of timetables: A project that takes much long we than anticipated does end up costing more. As market conditions change, which could be seasonally or structurally, it can impact the sale of your investment from what you had first under written. For example, if you plan to have a project done, and on the market in the spring, and it doesn’t hit the market until late summer, then, in certain markets, your sales price can be impacted. Plus, you have the costs of caring the property. That can be additional interest, payments, property, taxes, lawnmowing, sales, clean, utility payments, etc. On paper, it may look the same, but it can significantly and negatively impact your investment.