A lot of new investors and beginners asked me about common investing mistakes to avoid, so I figured out that this article would be helpful for most of you that are struggling with investing profitably.
I could talk hours about this topic, but let’s sort out 5 investor mistakes you should watch out for.
Ready? Let’s start…
#5 Waiting Too Long To Start
This is usually the case with beginners and people that don’t have a big budget.
So, they’re studying the same stock each day and procrastinating the investing part – the part that really makes them money.
If you ask me…
I’d rather lose money than see an exceptional growth and regret that I haven’t invested earlier. When it comes to investing, you have to be ready to take risks.
Beginners are delaying their investments because they’re afraid of taking risks.
Let’s move to another one…
#4 Investing based on emotion
If you’re planning to be a serious investor, you will have to shut down your emotions and think logically.
I don’t care if you fell in love with one stock, because if that stock doesn’t have an opportunity to make you money – don’t invest in it!
The same thing is with hate.
I know so many people hating on a certain stock that they actually know it will grow, but their hate isn’t letting them invest. In the end, it’s bad for your wallet if you put emotions into investing.
#3 Buying “Trends”
When I say trends, I mean Bitcoin and similar stocks. You’ve read online that some XYZ stock can make you millions and you see all these 20-year old millionaires investing in it.
So, the first thing that comes to your mind is that you can make a lot of money if you invest on time..
Investing in trends is definitely the stupidest investment you can make. Believe your instinct and don’t let all these fake coaches fool you that you can make 7-figures in 12 months with the “newest trend”.
… and now this is one that I see so often…
#2 Get-Rich-Quick Mentality
If you’re investing with an “I will get rich in 90 days” mindset, you’ll most definitely lose all of your money. Although investing seems like an easier way to make money, you should look at investing as a long-term business.
I also define this as a new investor mistake because after losing some money, they will quit and be terrified to invest any time soon.
Take things easy and look for possible returns in 5-10 years. Be patient.
#1 Don’t Understand Your Investment
This is probably the most common investing mistake of all. People just start investing their hard-earned money in a stock that they know nothing about.
Just because you’ve read on a forum or a blog that you can double your money – doesn’t mean that you will.
Please study the stock and don’t just throw your money and expect it will magically double.
These were just a few common investing mistakes that most beginners are doing. You should avoid them because they can cost you a lot of money in the future.
Make sure you’re not repeating any of those mistakes.