Don’t get trapped as I did Value traps with Mustang. Photo by Brad R on Unsplash Value trap, according to Investopedia, are investments that are trading at such low levels and present as buying opportunities for investors but are misleading. In other words, these are the investments/ companies which don’t require whole a lot to invest in them, a few bucks, and you are in, and it is a hell of a ride. Usually, it is a company that has very high dividend payout ratios and high dividend yields. This topic will be mainly for dividend investors. Consider a home seller who is offering to sell the house for significantly cheaper than the market price. If the discount is too big, you begin to question the motives of the home seller and start wondering whether you’re being tricked into believing it is a good offer. There might be thousands of problems, and the seller is giving the offer to get rid of the place. That is why a buyer should always be aware of what they invest their ...
My Biggest Mistake in Investing If it's too good to be true, it must be! Photo by Morning Brew on Unsplash I started investing with the Robo-investing platform called Wealthsimple, one afternoon when I was chatting with my friend. He informed me that he began to invest in ETFs, and he is excited to make a continuous investment. I did not wait and downloaded the app right there and had created the app when I reached home the same evening. It was like a thrill to me to finally be able to put my money in the stock market and let it grow. Long story short, after a few months, Wealthsimple launched its new “commission-free” product called Wealthsimple trade , and I downloaded it right away. My beloved Microsoft was my first buy. And then I bought an explosive stock Luckin Coffee “LK” on December 27, 2019. Miss on Starbucks? No worries! The only reason I bought Luckin Coffee was that I missed the price point of Starbucks Corporation. Seeing Luckin was making Starbucks run for th...