Guide for Beginner Investors: Investing is an effective way to invest money and build wealth. Most people want to enter the investment market but are afraid of not having proper knowledge and planning. But the fact is that you don't need a perfect plan. All you need to do is get started with your investing by getting the correct financial education.

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Here Viraj Patil, Performance Improvement Specialist, CEO at VirajPatil.net shared his view on how beginner investors tend to complicate the investment process and what can you do to avoid making the same mistakes.

How to get started in investing
There's no shortage of advice out there for beginner investors. But unfortunately, much of it is conflicting and complicated. This can make the investment process seem overwhelming, and as a result, many beginners end up doing nothing at all.

The good news is that it doesn't have to be this way. With a little research and planning, you can get started investing without complicating things.

Here are a few tips to get you started:
1. Be financially literate: It's important to understand the ecosystem and the markets when you are starting to invest. This will help you in making informed decisions.
2. Define your goals: What do you want to achieve with your investments? Are you looking to grow your wealth over the long term, or are you more interested in generating income? Knowing your goals will help you determine which investment strategies make the most sense for you.
3. Start small:  Don't try to go big right out of the gate. It's important to get comfortable with investing before putting too much money at risk. A good way to start is by investing small amounts of money in a few different investments. This will help you learn the ropes without putting your financial future at risk.
4. Stay diversified:  One of the most important things to remember as an investor is that diversification is key. When you diversify
Biggest mistakes by beginners

Investing is not rocket science. It’s quite simple. But that doesn’t mean there aren’t ways to complicate the process and make things more difficult than they need to be. If you’re just getting started in the world of investing, avoid these common mistakes.

1. Overthinking things
The first mistake many beginners make is overthinking things. They get caught up in the details and try to predict the future instead of focusing on the present. They try to time the market and pick individual stocks instead of sticking to a simple investing strategy. It’s important to remember that no one can predict the future and that simplicity is often best when it comes to investing.

2. Not staying disciplined
Another common mistake beginners make is not staying disciplined with their investing strategy. They might start off with a good plan, but then they let emotions take over and they make decisions based on fear or greed. This can lead to selling investments when they’ve lost money (panic selling) or holding onto them for too long even when they should be sold (greed). Discipline is key when it comes to successful investing.

3. Getting caught up in the short-term
Investing is a long-term game. It’s important to focus on the long-term and not get caught up in the day-to-day fluctuations of the market. Many beginners make the mistake of selling investments when they go down in value, only to buy them back at a higher price later. This is called market timing, and it’s extremely difficult (if not impossible) to do successfully. Instead of trying to time the market, it’s best to focus on your overall investment strategy and stay the course.
 
4. Not diversifying
Diversification is an essential part of any investing strategy. It helps to mitigate risk by spreading your investments out over different asset classes and industries. Many beginners make the mistake of putting all of their eggs in one basket by investing in just a few stocks or mutual funds. This can be extremely risky, especially if those investments don’t perform as expected. It’s essential to diversify your portfolio so that you’re not putting all of your eggs in one basket.

5. Not having a plan
Investing without a plan is like driving without a map—you might end up where you want to go, but it’s much more likely that you’ll get lost along the way. It’s important to have a clear investment strategy and plan before you start investing. This will help you stay on track and make decisions based on your goals instead of emotions.

6. Chasing performance
Many beginners make the mistake of chasing performance, which is when they invest in something simply because it has done well in the past. Just because a stock or mutual fund has had a good year doesn’t mean it will continue to perform well in the future. In fact, past performance is no guarantee of future success. It’s important to choose investments based on your overall investment strategy and goals, not just on recent performance.

7. Not re-balancing
Rebalancing is an important part of any investing strategy, but many beginners don’t do it. Rebalancing involves selling investments that have increased in value and buying investments that have decreased in value, in order to maintain your desired asset allocation. This helps to keep your portfolio diversified and reduces risk. Many beginners don’t rebalance their portfolios, which can lead to an increase in risk over time.

Best way to grow your money
Money grows when the investor is clear about their long term and short term goals. While planning the investments, make sure the right percentage of your total money is allocated to different diversified financial products which help you achieve all your financial goals.

Most importantly keep an eye on the futuristic markets and products. Financial education plays an important role in looking at the broader picture in this case. For example, currently, web3 and blockchain are technologies that are going to be big in the future. Investors should be looking at taking advantage of this sector and companies and products related to this sector.

So, if you're a beginner investor, the investment process can seem complicated. But it doesn't have to be. In fact, by keeping things simple and avoiding common mistakes, you can set yourself up for success. So don't complicate things — start with these tips and you'll be on your way to becoming a savvy investor in no time.