With the recent market crash due to the covid-19 pandemic, there has been a huge inflow of investors coming into the market. With such a huge inflow of new investors joining the market, there is bound to be a ton of newbie mistakes being made by these investors. For the past few months, I’ve seen countless investors making silly mistakes, causing them to lose a big portion of their portfolio. As such, I’ve decided to write up the 5 most common mistakes investors make and how should an investor avoid these mistakes.
1. Not Doing Sufficient Research Before Investing
The #1 thing I hear most when I ask new investors why they bought a certain stock is “because it was running up”. This is, by far, the worst reason to invest in any stock. This shows a classical example of FOMO, fear of missing out, whereby an investor is afraid that they might miss out on some