The ten traps
- Chasing hot tips. By the time a trend is everywhere, much of the gain is gone.
- Panic selling. Selling after a drop locks in the loss.
- Putting everything in one asset.
- Investing money you may need soon.
- Trying to time the market.
- Ignoring fees.
- Overusing leverage.
- Checking prices constantly, which fuels emotional decisions.
- Having no goal or plan.
- Falling for promises of guaranteed returns. No legitimate investment can guarantee profits.
Build habits that protect you
Write down your goal and time horizon. Decide your mix in advance. Add money on a schedule. Review quarterly instead of daily. A simple plan you follow beats a clever plan you abandon.
Key takeaways
- Behaviour matters more than prediction.
- No one can guarantee returns.
- A written plan keeps emotions out.
This lesson is general education and not personal financial, tax or legal advice. Investing involves risk, including loss of principal.