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Anonymous

22 Jun 2022

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General Investing

What's good n bad about over investing and how do u tell if 1 person is over investing

Discussion (2)

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  • Over invest = no emergency fund or using emergency fund to invest. Something happen and u are screwed.

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  • Over invest = using leverage/margin to invest, but you do not have the $$$ to cover the margin when margin call and you are forced to sell at a loss.

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  • No good thing. Bad thing = No holding power.

There isn't any benefit to over-investing. It stretches your finances thin and leaves you with less cash savings which acts as your financial safety net.

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It is very easy to tell if one is over-investing. The individual will be fearful of small market dips or news events and is always checking stock charts.

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Good investment allocation will give you a peace of mind. You are only investing with money you do not need urgently and hence this gives you holding power and more confidence in your holdings.

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