No one is perfect when it comes to decision-making.
When investing, it’s common for you to make mistakes as you deal with uncertainty and probabilities.
However, it’s how you react to these mistakes that will make you a better investor over time.
Investment mistakes are common and should be documented to avoid hindsight bias.
By keeping an investment journal, you can also take responsibility for your investment actions and learn how to improve your decision-making process.
Here are three investment mistakes I’ve made early in my investing journey.
I hope you can learn from them and avoid making these mistakes for your portfolio.
1. Buying purely for a large dividend
Picture this: A company had declared a jumbo dividend after selling off some of its assets.
Its shares were quoted cum-dividend (i.e. you can enjoy the dividend if you buy the shares) after this announcement.
Thinking that I would be able to enjoy a...