Patience, discipline, time and research are a key to a success in any field you can imagine. 

People who put the effort into investing often complain about how the stock market is a tough and unpredictable place. It is true, but there are also some mistakes people often make – because of them, they can’t progress as much as they would want to. 

This is why it’s important to be aware of the most common investing mistakes. Be smart – learn from others and their experience!

Impatience

In human’s nature is wanting things to be done quickly, especially if you’ve found yourself falling deeper and deeper into debt because you didn’t safeguard your debt repayment and now you want some quick money to pay it off.

When investing in a stock market, the majority thinks ”I want to be rich – tomorrow!”

Thinking about investing as a marathon instead of a sprint is a key factor. 

Nothing longlasting happens overnight – slow and steady is the approach you want to take.

Big expectations and underestimating risks

Without even knowing it, investors often take huge risks that can cost them a fortune. While, fortunately, risks usually pay off, sooner or later they will materialize. 

Think about it like this – not getting car insurance is a cheaper solution… in most cases. By not having insurance, you take a risk every day and one day you can find yourself in a car accident – to repay the damage you have to pay way more than you would usually pay for your insurance!

Control your expectations – this way you improve your risk management. When we expect too much, we can often be disappointed with the results!

Not doing some research = not understanding the market

Never invest in a business you don’t understand! 

The fundamentals are so easy to find and learn. It’s enough to scroll through YouTube or some other social media to find videos with information you need to get in the investing. 

While this may be good for getting to know the field, you need to research a lot more. Becoming more knowledgeable allows you to hold the strings in your hands. 

That way, you can avoid unpredictable situations and be prepared for any scenario.

The principle of diversification

Think about what you are doing. Investing everything into one company is a recipe for a disaster! 

Trembling every morning and nervously checking the situation in the market is a consequence of ”putting all your eggs into one basket”.

There are so many different types of investment vehicles – spread your funds across them. Having, for example, more than 15 stocks makes you safe. 

This way, even if the 4 of them drop sharply, there will be no room for panic!

Transaction costs

This is a common, crucial mistake. Transaction fees are sometimes so high, they can eat you alive! 

Don’t miss out on long-term gains of good investment – tax rates, opportunity cost, and other charges come when you don’t think about additional costs in the beginning.

A piece of good advice is to always put some money aside. Carefully opening a savings account in the bank and putting some money on it can save you from falling into debt!