Top 5 BIGGEST mistakes investors make

Top 5 BIGGEST mistakes investors make

Here are the top 5 BIGGEST mistakes investors make.

1. Try to time the market

  • As soon as investors buy, their very next question is “When should I sell?”. That’s the wrong question.
  • The correct question is how much can I buy?
  • Remember, it’s “time in the market” not “timing the market”.

2. Not buying frequently

  • A lot of investors buy stocks in 1 month and then they wait 3 months, 6 months, 9 months, and sometimes over a year to buy their next stock. This is a mistake.
  • You should try to invest 15% – 30% of your paycheck every month.
  • If you can’t invest 15% – 30%, that’s okay. Start small and aim for 5% but try to increase that percentage over time.

3. Let emotions take over

  • When the market goes down, investors can have the tendency to freak out and sell.
  • This is exactly the opposite of what you should be doing. You should be stockpiling, or buying more. Stockpiling is the #1 way to build wealth in the stock market.

4. Follow the advice from Gurus on Youtube, Twitter, Reddit, TikTok, etc.

  • Make sure you always double-check the stock in a software that cuts through human emotion and boils right down to logic.
  • We use Tykr because Tykr analyzes up to 5 years of historical data on the financial statements to determine if a stock is On Sale, Watch, or Overpriced.

5. Own too many stocks

  • You should try to own between 10 and 15 stocks. A focused portfolio that allows you to earn between 15% and 50% per year.
  • If you own too many, you’re essentially creating an ETF, Index Fund, or Mutual Fund and the best returns you can make are 6% to 8%.

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