The Fifth Law — Avoid Common Investing Pitfalls
from The Richest Man in Babylon by George S. Clason
Avoiding common pitfalls in investing will save you a lot of money in the long run. When people make bad investments and lose money, the reasons for failure often stem from these three pitfalls: falling for schemes, a lack of experience, or a romantic desire.
How to Apply This
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Avoid tricksters and schemes.
If something sounds too good to be true, it probably is. This old fact is especially true in investing. -
Do not trust your inexperience.
Inexperience may give you a false sense of confidence and can lead to bad investment decisions. -
Do not let romantic desires guide your investment choices.
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