Top 5 Investing Mistakes to Avoid

Investing can be a thrilling adventure, but there are some common traps that can trip you up and derail your financial aspirations.

Here are our top 5 mistakes to dodge on your investment journey

1. Think, Don't Feel 🧠

Letting emotions like fear and greed drive your investment decisions can lead to buying or selling at the worst times. Keep your cool and stick to your plan with clear goals and risk limits. This will help you ride out the market’s ups and downs smoothly.

2. Spread It Out 🗂

Don’t put all your money in one place. Spread it out across different sectors, asset types, and regions. A well-balanced portfolio acts as a buffer against market volatility and protect you in the long run.

3. Stay the Course ⚓️

Chasing on the latest hot stock or market trend can backfire when the hype dies down. Instead, stick to a long-term strategy based on solid fundamentals and ignore the herd.

4. Mind the Fees 💸

Don’t let fees eat into your returns. Pay attention to transaction costs, management fees, and other expenses. Keeping these costs low will help you get more out of your investments.

5. Forget Timing 🕚

Trying to predict market movements or “time” the market is almost impossible, even for seasoned investors. A Brinson, Hood, and Beebower Study shows that almost 94% of your returns come from your asset allocation, not market timing. So focus on a steady, consistent strategy instead.

It's perfectly fine to embrace a bit of risk in your investing journey.

Financial expert William Artzberger refers to this as "fun" money. Allocate a small portion of your portfolio, no more than 5%, for speculative investments. This allows you to satisfy your urge for risk without jeopardising your main investment strategy.

Just be prepared for the possibility of losing this money, and never dip into your retirement funds for these high-risk ventures!

Woman with mobile phone and stock market

We know how tricky investing can be, but by staying aware of these common mistakes and sticking to a disciplined, long-term strategy, you’ll be much better equipped to reach your financial goals.

Remember, investing is a marathon, not a sprint—stay the course, and your patience and planning will pay off!

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Disclaimer: Investing carries risks. The value of investments can go down as well as up, and you may lose some or all of your money. Past performance is not indicative of future results. This article is for informational purposes only and does not constitute financial advice.

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Master Your Money: Top 5 Investing Mistakes to Avoid

Here are our top 5 mistakes to dodge on your investment journey

It's perfectly fine to embrace a bit of risk in your investing journey.

***

Ready to up your investing game and WIN BIG?

Join Yeekatee and SmartPurse for the Stock Sister Challenge!

The game starts June 3rd ⏰

Want to learn more about investing?

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