Easy investing is possibly too easy. At the beginning of your investment career youll want to curb your natural impulses and avoid the perils of over-investment. Heres why.

Investing in properties, company shares, or technologies can be simple, once you get the hang of it. In fact, it can be too simple. Once youve mastered the principles of investment, theres a serious temptation to use those principles too often and to over-invest. Thats what you have to avoid in order to make a success of your early investing career.

Over-diversifying your investment portfolio can be a good way to hedge your bets, but in the early stages of your investment career, youre probably not working with a huge amount of investment capital.

By over-investing, youre spreading that capital even more thinly than it would otherwise be spread. Youll see returns more consistently, but not on all of your investments, which means that youre not using your capital as wisely as you could be.

The bottom line rule of investment is to know what youre investing in. For example, if youre interested in real estate

Do background research on the company youre buying a piece of, and

Understand the pricing trends of the neighborhood in which youre buying and renting apartments.

When you diversify your investments too much at an early stage, theres

a psychological temptation to avoid this necessary research. If one investment fails or even if half your investments fail you can still recover some or even most of your initial capital. The risk of failure is lowered, so youre not as motivated to do the research that helps you avoid failure outright.

For experienced investors, easy investing practices diversifying your investments can be a good policy in order to protect yourself.

For beginning investors, diversifying might give you less of a return than you could otherwise receive and can encourage really bad investment habits, like not understanding the background reality of your investments.

Before you get in over your head with easy investing

Do a little bit of hard work,

Confine your early investments to a few properties or stocks, and

Put as much of your capital as you can into those few properties.

Youll see the dividends and with that solid background underneath you, youll be able to spread your funds a little bit further in the future, confident that you know what youre doing and that youll keep doing well!