TLDR Chasing hot stocks can be beneficial to your portfolio if you know what you’re doing, but is often detrimental. Investor pitfalls include a lot of psychological traps that investors fall into. Knowing these traps can save you a lot of money and pain from following the wrong person (guru) or the wrong pattern.
Hey everyone, hope you enjoyed our post last week on how social comparison occurs, especially on the path to financial independence. I hope that article helped provide some insights into what comparisons; we can expect on the personal finance journey; and what we can do about it.
Today, we’re talking about how most investors end up losing their shirts. While there are a thousand and one ways to lose money investing, we are going to focus today on chasing hot stocks. And, because chasing hot stocks is so inextricably linked to those who peddle said stocks