The Dangers Of Rushing Into A New Investment: Why You Need To Slow Down

There's nothing more exciting than spotting what seems to be a great investment opportunity. You might have read about it in the press, seen an article online or heard about it from one of your favourite financial pundits.

So should you quickly invest in this hot new stock while it's still 'on the up'? The quick answer is no, simply because speed in the stock markets invariably leads to losses.

Be aware of red flags

Let's consider for a moment the fundamental economic reality of the stock market. Economic theory holds that they are perfect in their operation (e.g. efficient) and that they automatically price in all publicly known information. This means that if you read something online, in the press, or get a hot tip, this information will already have been priced into the stock.

When we get excited about a potential investment, which is natural and absolute human behaviour, it's easy to miss red flags.

Yes, there are plenty of fantastic investment opportunities out there that can earn you a healthy return and growth, depending on your overall goals for asset accumulation versus income and your personal appetite for risk. When you work with a financial adviser, he or she will understand the goals for your portfolio and your preferences for risk, and seek out the best opportunities on this basis.

Research potential investments

We always counsel our clients to spend time researching potential investments, and we carry out this in-depth research too using analytical tools rather than 'tips'. Fundamental analysis is the key to successful investment, combined with broader business trend analysis and understanding, to work out which businesses - and their stocks - represent true value and opportunities.

It's vital to take your time and not feel pressured to make a quick decision. Equally, it's vital not to hand over your bank details. History is littered with jumpy investors who lost their hard-earned assets through a knee-jerk decision.

How Integritas Financial Planners can help

The team of financial investors and personal advisors at Integritas are here to help you build an attractive, successful financial portfolio that performs in the longer term - in line with your personal goals and ambitions. We check the backgrounds of all investment opportunities to identify whether they are legitimate or not, and we can actively manage your portfolio for you, or provide advice when required. Our service is flexible to your needs, expert and confidential.

Don't risk losing your hard-earned income on a scam or an investment that turns out to be money down the drain. Speak to Integritas for investment advice that will truly pay off. Book your free one-off consultation today.

LongCTA Financial Checklist


Image source: Canva