Being a new investor can be a tough learning experience, especially since newbies are prone to making mistakes. The good news is that there are plenty of free resources and tools out there to learn from — especially if you are going to spend some time reading through top stock market and finance blogs. From 401k investing to day trading, there is pretty much a blog out there for everything.
No matter what direction you plan to take, it’s important to realize that your money is always at risk — no matter what the investment. With all of that in mind, let’s take a look at some of the most commonly made mistakes by investors without a lot of experience.
Following the Hype… Read the Blogs, But Research Your Actions
Just don’t do it. Resist the temptation to buy stocks or shares that everyone else is rushing to buy. This is something that you might find on a wide range of websites and blogs that provide stock alerts. In most cases, any website or blog freely recommending stock tips like this, they are probably already in and looking to dump shares when everyone else jumps in. This is something that is also discussed on many personal finance blogs, as new investors are always looking to get rich quick with their investments.
There are also many newsletters, Facebook groups, and social media accounts that you can follow for such alerts as well. Don’t take emails or “reports” that promote certain types of securities at face value. If you do, you could be at risk of falling for a pump-and-dump scheme. If you spot an exciting new investment opportunity that everyone is talking about, first do your research. Assess both the pros and cons before investing your money.
Failing to Assess the Quality of Individual Investments
Let’s say you hear about a hot new sector that everyone is investing in. You may read news articles about it and see promising analyses or reports. So you go ahead and buy a stock within that sector. But several months later, your investment is worth nothing. What happened here?
Again, you likely came across some great information (so you thought) on another website or blog, but probably didn’t dive deep into the full story. This is something we are seeing a lot of the in the regulation space right now — whether it be with medical, bitcoin, marijuana, or even sports betting stocks. All of these spaces are super new and super hot — so the information on each of them might be light, and the stocks can heavily swing in either direction in a moments notice.
With that being said, don’t buy just any stock or invest in securities just because the overall industry is doing well. Consider, for example, the cannabis industry. With eight states having legalized marijuana, and a dozen more contemplating it, the sector is on a hot streak right now. This is especially true with so many benefits coming to light around CBD, and how it can actually improve inflammation and pain levels for a wide range of auto-immune diseases and health issues.
If you look at the value of marijuana stocks over the past decade, it’s steadily been on the rise. However, that doesn’t mean all cannabis stocks are worth the same. Medical marijuana stock is worth far more than recreational companies. The reason being that Jeff Sessions, the firmly anti-pot attorney general, might go after recreational weed even in states that have legalized it.
But no one is out to get medical marijuana. In fact, doctors and policy experts are looking to medical marijuana to curb the opioid crisis. If you are investing in medical pot stocks, then you are making a great investment. But the same cannot be said of recreational weed.
We covered a lot in this section, but again, if you are already following these individual topics through well-known and trusted blogs, this should be nothing new to you. Don’t just look at stock market and investing blogs for your information, always remember to go right to the source and view users forums as well.
Using Blogs and Trading Comparison Sites to Review Fees
New investors are highly likely to put money in mutual funds, index funds, ETFs, and so on. But one thing newbies ignore about such funds are the fees. Look at how much you have to spend in administration fees compared to returns. Otherwise, whatever you earn in returns would just get eaten up by all the fees associated with the fund.
Similarly, calculate how much of fees charged by brokerage firms, investment advisors, and the like affect your returns. Your final profit would rely on these calculations.
NerdWallet, one of the top financial blogs online, is highlighted in the screenshot below from Google thanks to their awesome list of discount brokers and the fees associated with each — yet another perfect example of how reading financial blogs can save you money and help you learn more in the process.
The bottom line is that new investors must be willing to research investments and the costs associated with them thoroughly. Never dive into a new sector or buy stock without being certain of what you are spending your money on. Good research and background checks are crucial to investing safely.
Therefore, be aware of the above mistakes and fix them before it is too late, but also make sure to stay active and always read up on the latest technology, financial and stock trading blogs on the internet today. If you are really devoted to the idea of becoming a professional trading, be sure to consider your options with starting a blog of your own and documenting your journey.
How About Helping Versus Pitching Top Bloggers?
I often get pitched guest post ideas from bloggers I do not know. Although I appreciate the offer I never take up these folks on their offer because I do not know them, their brand or anything they do. No way do I have the time to actually research the individual; I am a busy bee. Another email bites the dust. I either ignore the email or note guest posting closed long ago on my blog, then include a link to one of my eBooks, like this branding eBook.
Who guest posts on my blog? People who generously helped me, asked for nothing, expected nothing and relaxed. Relaxing is key. Bloggers who help me from a chill vibe often befriend me if they practice writing to hone their blogging skills. From there, opportunities multiply fast. Sweet backlinks on top blogs often flow your way. Traffic and profits increases slowly, steadily expand over time. Blogging buddies supply you with blog post ideas through their questions and problems. Everything grows because you helped top bloggers versus pitching them aka asking them for help. Even if you pitch a valuable guest post idea, the guest post idea serves no value unless you publish the guest post on a trusted, authority blog boasting a huge, loyal readership. Pitches seem worthless until content and links actually appear on top blogs, going live and public, for the world to see.
I often advise helping bloggers freely for months before considering any ask or pitch. Most times, blogging buddies invite you to guest post on their blogs. Blogging success flows to generous people because you get what you give. This is one of the advantages of blogging. Give freely, relax, trust in the process and receive easily. Place your needs to the side. Take care of your fellow blogger. Help them out via a retweet, Facebook Share or perhaps by promoting the blogger on your blog. Nobody needs to struggle blogging. Nobody needs to spend 4 hours daily sending blind pitches to blogging strangers. How about this? Spend those 4 hours patiently, persistently and generously helping people in your blogging niche. Help fellow bloggers to earn their trust. Assist fellow bloggers to befriend fellow bloggers. The split second you earn the trust of any blogger, you plant seeds for a beautiful, thriving, warm friendship. Gaining the trust of fellow bloggers inspires traffic and profits to flow to you. Forget the concept of pitching. I pitched 2 people during my 6 years of running Blogging From Paradise. One blogger pitch served as an experiment with an established, pro blogger and the other pitch served as the direct way to guest post for a 2 million member blogging community.
My 13,500 plus backlinks on Blogging From Paradise flowed to me after I pitched only 2 souls. Imagine that for a second. Observe the raw power of making friends, helping people, expecting nothing and being generous. Capitalize on the passive element of befriending bloggers through generous service. Tonight I will spend 90 minutes walking around my neighborhood. During that hour and a half, my blogging buddies will promote my blog and spread my word. Ditto for my 8 hours of sleep tonight; my blogging buddies grow my traffic and profits around the clock, adding an immensely powerful, passive element to my blogging campaign.
Being generous has some serious perks.
Should You Blog About Everything?
Blog about everything? I know this idea may be on your mind. Newbie bloggers especially ponder the idea.
I know blogging about anything on your mind seems like a good idea to new or even struggling bloggers. Maybe you gain mojo because you post daily, blogging about anything popping up in your dome. But this is a bad idea. Nobody should blog about any and every topic for the clear reason that nobody follows a specific blogger based on the blogger’s random thoughts, save world famous celebrities who built up a big following through some other niche.
Imagine a movie star begins blogging. Movie stars boast tens of millions of fans around the globe. Anything the star does, people hang on their every word, right? Imagine the icon publishing posts on a wide range of topics interesting to them. People read because of the star, not because of the wide range of broad topics. But imagine being a new blogger with zero followers. No movie stars read this post. Readers head for the hills the moment you change topics because no jack of all trades bloggers build credibility. Who has the time, energy and focus to be an expert in 5, 10 or 20 niches? No one does.
Blog About Everything?
Humans specialize. Doctors and lawyers do one thing and do it well because where attention and energy goes, grows. Imagine if your doctor delivered mail and picked up garbage professionally, too, working 2 jobs in addition to their medical practice. Would you trust her doctor skills? No. Of course not. People trust specialists because specialists devote all professional time and energy to one venture. Generalists? Nobody trusts someone who tries to master 2 or 5 or 10 skills simultaneously because thousands of other people master 1 skill, in these areas. We follow specialists and trust specialists. Generalists fade away.
If you want to blog about everything just ponder the specialist versus generalist point. Blogging about everything is trying to be a generalist. Nobody trusts you. Even though blogging about everything seems easy, seamless and almost effortless, people stop following your blog on each topic change. Imagine blogging about puppies one day. People who love puppies find your post, read it, enjoy it and follow your blog. Tomorrow, you publish about Chinese food. Puppy readers – who followed you for puppy content – skip the post…..most stop following your blog because puppy fans want only puppy-themed content. You just lost readers, for good.
Change Topics Lose Readers
Visualize the following day; you publish about relationships. Everybody stops following your blog. Perhaps a few relationships-focused folks read the post. But you lose trust the moment you shift topics again. Ultimately, who builds a large, targeted, loyal following, blogging about relationships? Relationships bloggers who blog about relationships 100% of the time. Specialists devote all blogging energy to mastering one topic, spending thousands of hours covering the topic, become skilled and trusted in the niche, build credibility and become successful. All multi topic bloggers blogging about everything fade away and vanish.
The world makes room for specialists. Generalists? Nope.
Pick one blogging topic. Blog about one thing. Focus on one discipline. Be a specialist, not a generalist, to be a leading blogger in your nice. Face your fear of releasing multiple passions to make room for a single passion. I know you fear letting go. I did too before creating Blogging From Paradise.
Google loves specialists too. Google turns its cyber nose down at generalists. I scanned a popular blogging key phrase a few moments ago. Guess what? I rarely note SEO but tidying up one blog post with some details for optimizing helped me reach page one on the search engine. Why? I specialize in the blogging tips niche. Apparently. Google interpreted through its complex algorithms that I published thousands of valuable blog posts on a single topic 100% of the time, virtually. Google traffic rocks. Impress the search engine gods by gaining search trust. Specialize. Stick to one blogging topic. Never blog about everything.
Let go the urge to blog about anything that comes to mind. New bloggers need release this notion to build the foundation for a successful blogging career. Specialize by picking one niche you love blogging about. Be a specialist, not a generalist, to succeed with your blogging campaign.
Do you want to be a pro blogger who circles the globe? Buy my eBook:
Avoid this Blogging Wake Up Call to Enjoy the Journey
Blogging need not be a lesson in harsh wake up calls. You can and will largely enjoy the journey by knowing this: success finds generous bloggers. Let that idea firmly impress onto your mind. Be with it. Allow the idea to worm its way into your consciousness until being generous becomes part of your being. Helping people for free boosts your skills and increases your exposure. Skilled bloggers with massive exposure become successful.
But one wake up call seems to find most bloggers who refuse to learn this lesson. Bloggers need to struggle, fail and suffer because they try to get money and traffic by focusing solely on receiving methods, versus giving generously of their time and talents. Imagine this scenario; a blogger writes and publishes one blog post weekly. Cool. But the blogger sits around and does nothing else blogging-wise for the remainder of the week. Hmmmm…this is not being generous, guys. This is being stingy. Bad move. At week’s end, the blogger did not make a penny of profits. Panicking, the blogger immediately analyzes their various income streams. How can they maximize profits through the streams? What is wrong with their income streams? Did they pick the right streams? Or did they pick the wrong streams? What gives?
Struggling bloggers then spend 2, 3 or 5 hours analyzing their income streams, focusing all of their attention and energy on the GETTING aspect of their blogging campaign. Terrible idea. Why? The reason why you struggle to get is because you refuse to give generously of your time, energy and talents. The income streams? Nope; not a problem. Your lack of generosity is the problem. The wake up call is most bloggers focus heavily on getting when struggling to drive traffic and profits when they should be focused heavily on giving generously. Giving generously leads to greater blogging profits. Instead of writing and publishing one blog post weekly, how about writing and publishing 2-3 posts weekly, weaving some stories into your blog posts? How about you spend 4-8 hours daily generously reading blog posts, commenting genuinely on blog posts, promoting other bloggers and yes, promoting yourself, too?
Put in the giving time to make getting easier and easier. No need to slam into the cold, hard wake up call of focusing selfishly inward, trying to pin your struggles on inanimate, lifeless income streams. You have a giving problem, buddy. Time to be generous. Time to step it up. Write a guest post daily or perhaps, every 2-3 days. Go ahead. Do it. Begin video marketing. Build bonds with bloggers. Help them out. Practice writing. Gain invites to guest post on blogs from your niche. Blogging becomes more fun, more enjoyable and flat out easier if you put in the time, generously helping folks.
Focus heavily on giving. Your star will shine if you generously serve people. On the contrary, blogging and life become so much harder if you obsess over your income streams, analyzing, over analyzing, focusing, wasting precious time and energy on getting, when you should be giving more freely. Blogging feels more fun, too, when you focus heavily on giving, because we were designed to give, to be generous and to serve folks. Doesn’t it feel amazing to help people? Of course, it does. Enjoy the blogging journey and avoid this painful wake up call….plus….you get to sleep in, hehehe 😉
Search Blogging Tips
Blogging3 years ago
6 Steps for How I Nabbed 6500 Comments on My Blog
Blogging1 year ago
113 Bloggers share their Favorite Email Marketing Tools
Reviews3 years ago
LeadNetwork Pays Big Bucks for Payday Loans
Blogging13 years ago
CoComment – The new way to track blog comments
Blogging3 years ago
6 Tools For Boosting Content Marketing Results Over The Holidays
Search Engine Optimisation3 years ago
7 SEO Analysis Tools Every Blogger Needs to Know
Blogging2 years ago
How to Start a Fashion Blog in 8 Simple Steps
Blogging10 years ago
In Search Of A Storytlr Replacement