Making mistakes is often part of the learning process. However, when it comes to investing, this can be an incredibly expensive lesson. With that in mind, we’ve compiled some investment mistakes you need to avoid:
Buying stocks on unfounded tips
Everyone from your brother in law to your best friend might have a “surefire” tip about an investment that they’re “certain” will skyrocket. Outside of your social circle, the media is rife with experts and pundits who claim to know which direction the stock market will move with certainty.
The truth is that no one can predict with full conviction how an investment will do over a certain time period –regardless if they’re a famous TV host or relative. This is one of the biggest investment mistakes you need to avoid because it often involves throwing your long-term investment goals out the window. For instance, if you’re investing for retirement decades down the line, changing your investment plan and concentrating your wealth into a “Golden Goose” opportunity will often cause more harm than good.
Overlooking the big picture
You’re probably strongly inclined to notice how your investments are doing on a day-to-day basis – after all, it’s your hard-earned wealth that’s fluctuating up or down.
As much as it’s tempting to see how your investments are performing day-by-day or even minute-by-minute, this can lead you to overlook the big-picture of your long-term portfolio performance. Think of it this way: You (hopefully) wouldn’t give up on a marathon if one mile was run slightly slower than the rest. The same applies to your stock portfolio; you often shouldn’t overlook your long-term goals because of short-term gains or loses. This is another one of the investment mistakes you should avoid because it can lead to rash and irrational decisions that lose money over the long-term.
Want to learn more about investment mistakes you should avoid?
At LexION Capital, we’re fiduciary advisors with decades of experience who base our investment decisions on Nobel Prize-winning academic research. With our clients’ best interests in mind, we help them avoid investment mistakes by crafting unique investment plans to meet their goals and needs. If you’d like to learn more about our services and how we can help make you wealth work for you, don’t hesitate to contact us today.
