LearnApp Common Mistakes New investors make and how to avoid them >>>LearnApp Letting personal bias control the investments Are you only buying stocks of the companies you know? Or, companies whose products you use? If that’s the case, personal bias has clouded your investment decisions. How to avoid it? Research, Learn fundamental analysis and use it as a guiding factor when deciding to invest. >>>LearnApp Ignoring tax & inflation Many new investors forget to factor tax & inflation into account and don't manage their income properly, How to avoid it? Focus on asset allocation & always calculate money based on its purchasing power. >>>LearnApp Putting all eggs in one basket Diversification helps you balance risky & stable assets. Many hew investors don't invest in different asset classes or hold too much money in a few investments. How to avoid it? Gradually build your portfolio with different types of investments and distribute your risks. >>>LearnApp Holding a loss-making stock for too long Many beginner investors hold a loss-making stock for too long hoping it turns around. As a result, they lose the little profit they could've made or fail to minimize their losses. How to avoid it? Use stop-loss to set a limit for lasses and sell the stock when it reaches that limit. >>>LearnApp Trying to time the market It's extremely hard to time the markets & trying to do so only harms your investments. How to avoid it? Let the market do its thing. Focus on things you can control (asset allocation, risk management) & take data-driven investment decisions. >>>LearnApp Not being patient Trying to get quick gains, short term focus, and eliminating a good strategy too fast, are all signs that you aren't being patient while investing. How to avoid it? Let this quote speak for itself: “Invest for the long haul. Don't get too greedy and don't get too scared.” - Shelby M.C. Davis Invest with a plan, focus on long-term, and set realistic expectations. >>>LearnApp Letting emotions control your decisions When you let fear and greed drive your investments and your bias cloud your judgements, you fall into the trap of emotionally charged investing. How to avoid it? Educate yourself on investment psychology to spot your blind spots and not let them ruin your investment decisions. Don’t hold unrealistic expectations and be patient. >>>LearnApp What mistakes have you made as a beginner investor? Share in the comments below! “Be humble to see your mistakes, courageous to admit them, and wise enough to correct them” — Amine Ayad”