Want to Grow Your Savings? Disregard These 10 Investment Guidelines at Your Own Peril

The world of investing can seem intimidating, particularly when it comes to boosting your savings. There are as many rules and methods of investing that seasoned investors, not to mention anyone less than well-versed in the space might be overwhelmed. But what if, some or even a few of these best-practices do not work for everyone? Today, we look at a list of ten common sense investment rules and explain why you may need to throw caution (and profits) to the wind if you really want your cash pile to grow — although beware that flouting these could cause totally new risks.

1. The best strategy- Always Hedge Your Own Bets

We are constantly drilled with the mantra of diversification and indeed, it can reduce risk to spread your specific sums across separate assets -… And yes, there are times when investors will vastly overweight a stock or sector in the hopes of significantly outperforming. While it can be riskier, and therefore more profitable than the method above if done well.

2. Invest in What You Know

The age-old advice of sticking to industries you're familiar with can be comforting but can also trap you in a bubble. Exploring sectors that are new or emerging could lead to exciting opportunities. Sometimes, stepping out of your comfort zone may result in substantial financial gains.

3. Avoid High-Risk Investments

In general, high-risk yields high reward in a return; Although being careful is important, avoiding risks altogether may prevent you from taking some of the big payoffs. So training to asses risk and manage it, rather than trying not to take any,is going to open up a lot more areas for growth.

4. Staying Invested for the Long Term

Everyone hears all the time that buying and holding for "the long run" is the single best strategy; but realistically, it's impractical for many investors. Circle does sometimes allow you to cash out early so you can take advantage of big market moves, or get into some quick liquidity if a financial situation presents itself this way. Regularly reviewing and adapting your investment strategy to reflect the current economic environment is paramount.

5. Maintain a balanced portfolio

Rebalancing is a good thing, but if you rebalance too often then your transaction costs will start to take huge chunks out of our returns. That could mean you experience market trends when it makes sense but without wasting money, if for a less frequent repositioning strategy.

6. Don't Time the Market

Investors have been told for years that it is impossible to time markets effectively. While this is in fact difficult to do, it can provide excellent outcomes if you make intelligent changes according to the trends and market positions. It can also cause you to miss out on opportunities for investment that present themselves at the time.

7. Stick to Blue Chip Stocks

Blue-chip stocks are often considered as ‘safe’ because they tend to be less risky. Nonetheless, where we typically find the greatest growth opportunities is in small-cap or emerging co.s Should the hedge fund position work out in your favor, you could score outsized returns — but only if you've done enough due diligence to believe that company can overcome whatever caused the stock's fortunes to sour.

8. Follow the Crowd

The danger of herd mentality As much as it may seem that the wave is high and surfable with a quick look on what’s trending now, most of times-on research valuable decisions are to be made through intuition. Finding underpriced stocks or areas of the market that others aren't looking at is a way to make big gains.

9. Set Specific Financial Goals

Financial goals are important, however driving hard toward them only to forsake an opportunity when it comes your way is not the best strategy. Instead of just focusing on what predefined goals to reach, you set yourself a canvas strategy that can depart from at times needed if the market plays out differently.

10. Decision of The Heart

Emotional investing is a dangerous place. But emotionlessness can also lead to opportunities missed. Listen to your intuition and find a fusion between logical reasoning and empathy in order to make decisions.

Although these rules largely assist investors in understanding the complexities of such a diverse market, defying them could potentially lead you into an alternative route which is more rewardable. Remember that all investing involves risk. Please make sure you do your research and take into consideration for financials before doing anything way out of line. Happy investing!