Top 5 Pitfalls Investors Should Avoid

No. 5: Making decisions based on familiarity

The overwhelming majority of people will always choose an option that seems familiar to them, as opposed to venturing into the unknown. But for investors, such a judgment can rapidly lead to erroneous decisions. For example, an investor might choose a certain business opportunity simply because he or she has some connections to it or because it is similar to a past decision, despite any signs that such a move might not be recommended.