Biggest Mistakes Almost Every Investor Makes

Investing is a tricky game. It's easy to stumble, and even seasoned investors admit to their mistakes. In this article, we're breaking down 12 of the most common errors that nearly every investor makes at some point, so you can avoid them and sharpen your financial game.

1. Timing the Market

Trying to predict the market's next move is a fool's errand. Some of the most successful investors never waste time guessing where the market is heading. Instead, they focus on businesses, not macroeconomic forecasts. You can't control events like pandemics, inflation spikes, or geopolitical unrest, so why try? Instead, shift your focus to identifying high-quality companies. The key isn't knowing when the next storm will hit—it's picking ships that will weather the storm and sail smoothly when the wind is at their backs.

2. Getting Attached to Your Purchase Price

Investors often cling to the price they initially paid for a stock, letting it influence future decisions. But the market doesn’t care whether you bought at $100, $50, or $200. What matters now is where the company is headed from here. Holding onto the idea of breaking even or securing a profit based solely on your initial buy-in is a recipe for disaster. Pretend you’re looking at a blank slate every time you decide to buy, hold, or sell.

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