Trust me, you don't want to miss the last one.
1. FOMO Investing
Fear of Missing Out on an investment opportunity that everyone is talking about can lead to buying stocks at very inflated prices. I fell into this trap, chasing the hype and ending up with overvalued investments. Avoid this mistake by doing your own research and making informed decisions, rather than following the crowd.
2. Ignoring Fees
I was so focused on potential returns that I didn't pay attention to fees. Hidden costs like management fees and transaction fees can significantly eat into your profits over time. Always check the fine print and understand all the costs involved before investing.
3. Not Diversifying
Many people think buying one ETF or index fund makes their portfolio diversified. I learned the hard way that true diversification means spreading your investments across different industries. Instead of only tech-related ETFs, consider a mix of tech, mining, agriculture, and healthcare. This way, you're not overexposed to a single sector, and your portfolio can better withstand market fluctuations.
For more insights, check out this video: 3 Investing Mistakes I Made That Cost Me Big Time.
- AJ