An ordinary individual makes investment decisions with two kind of objectives. For the security of one's own family and to ensure a smooth and comfortable retired life! But can such an individual be aware what a reasonable rate of return is, in the ever-changing scenario of the market? Are the investments at the right level of risk? Are the intended retirement plans in jeopardy?

Just as one's physical body needs periodical check-ups for maintenance of health, an investor needs to review one's overall portfolio at regular time intervals. One needs to constantly update himself, with the help of a financial adviser, the market basics, and measure and control risks, proper procedures to avail tax benefits, and avoid the pitfalls. Everybody is up to investing; but very few know what is healthy and safe investing.

Investment is a subject that required both the head and the heart. Investing success is a practical issue, which can be mastered to a great extent by intelligent application of the rules of business. One can control one's own financial life with careful study of the moods and swing of the market. Market is neither one's permanent friend nor the permanent enemy. When you learn to minimize your worries about investing, you begin to multiply your wealth greatly!A good and intelligent investor works and books profits in any type of environment. Whether it is a bull or bear market, a recession or a buoyant economy-they are the alternative beats of the same heart for him.

Lynnette Khalfani, an investment expert outlines the five crucial phases of the investing process to avoid costly mistakes. 

• "Strategizing to meet your goals and needs 
• Buying the right investments for your portfolio 
• Adequately holding/monitoring your investments 
• Selling investments in a judicious manner; and 
• Dealing effectively with financial advisors:"

One need not confuse oneself with the voluminous literature available on the stock market. The basic rules of investing is to make profits and avoid mistakes have always been the same since time immemorial. If you save from your earnings, you earn from your savings! An investor must realize the importance of systematic savings! The related real action is to earn the compound interest on what you have save.

For an investor, success is important; once that is achieved, greater success assumes more importance for him. This is the simple truth about human tendency. Costly mistakes in investing can be avoided by keeping investment goals realistic, measurable and specific. Do not concentrate investments at one specific area-have systematic dispersals. Think about the portfolio regularly and with an intense investigative approach. Own a stock selling strategy with measured stop-loss approach, and forever remain a student of the share market literature, latest research, and the company reports. Constantly update your theory knowledge about investment. Market conditions and the volatility will always provide lessons about practicality of investment.

Do not rely too much on the so-called inside information. Your hard-earned life savings are at stake. Take advice from an experienced broker for true diversification of your investments. Entering in day trading without knowing the full implications of this form of investment, and hoping to make fortune from the daily fluctuations in share prices, could prove to be a costly mistake. Do not invest more than your capacity to lose. Set stop limits and stick to them. View losses are part of investing. When they happen do not stress too much and take hurried decisions to recoup the losses.

Everyone makes attempts to invest with one fond hope-to gain! Nobody is interested to be labeled as a loser. Always keep track of the market conditions, and know the real nature of the volatility. Playing the trading game with great discipline and in conformity with the market trends is the only way to play it successfully.

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