COMMON MISTAKES IN INVESTING

COMMON MISTAKES IN INVESTING

Yes, I made a lot of mistakes in my early life of investing and I have learned my lessons. There are so many common mistakes people make, I would like to highlight a few as below,

1) I can time the market
There is no way you can time the market, no matter how good your technical analysis knowledge is, do not try  to time the market. Buy and sell in short term will make you lose more money in long run.

2) I can beat the market
Personally I never met any investor that can beat the market or anyone who knows any investor that can beat the market consistently.You can't beat the market, trust me! The best you can do is trying to follow average return!

3) Buy low and Sell High
That is the biggest joke that you hear from experinced investors.It is not true and most investors are actually doing the opposite- buy high and sell low. When market is in bull run, everyone throws in money and most of us are doing the opposite during market downturn. It is not easy to control your emotion during bear market, people are panic and they are not thinking of what shares to buy but instead thinking what other shares in his/her portfolio that can be sold!

4) I can select the correct stock
Hell no!You might be right 80 percent of the time but there is no way you can 100% right! Even Warren Buffet made mistakes by picking up airline stocks and he had to sell everything during Covid-19 pandemic!!