DID YOU MAKE ANY OF THESE MISTAKES?
Hey Curious Investors!
I know I have made many mistakes in the markets. I have bought and sold on emotions, skipped my homework, and wasn’t patient enough. These mistakes caused me to lose money, but that is totally fine! I consider this lost money as the price you pay for learning valuable lessons. I won’t be making those mistakes again!
Here are some of the classic mistakes people make when investing in the stock market.
BUYING AND SELLING ON EMOTIONS:
If the market crashes by 20% or more, you will NOT feel great. If the market goes up by 20% you will feel GREAT. Don’t let these feelings affect your decisions. Don’t panic during crashes and don’t get delusional during rallies!
PUTTING ALL MONEY IN ONE STOCK:
Not diversifying enough is something you must prevent. Diversify across asset classes, within asset classes, and across countries! This will lower your risk! If stocks perform poorly, bonds might do great! Or if the US market stinks, the European markets might not do as badly.
NOT DOING HOMEWORK:
If you want to invest you must know what you’re doing! Simply throwing money at the market like you would with a dart is not financially intelligent… Learn about the markets and know what you’re buying!
BUYING ONLY ON PRICE:
NEVER buy on price alone! NEVER buy a stock JUST because the price has gone up. NEVER sell a stock JUST because the price has gone down! If you do, you are just speculating and will most likely lose.
NOT BEING PATIENT:
Investing is a long game and you cannot expect to get rich overnight. Or even in a few years… An average return of 7% annually just isn’t going to make $1,000 into a million in 5 years! Be patient and stick with the plan.
Hope this post was helpful for you guys!
❤️ - Robert
“Diversification is protection against ignorance”
When that perfect pitch comes along, you want to benefit as much as possible. That’s why the most successful investors concentrate their assets into high quality undervalued businesses 📈
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