There are three common mistakes to avoid when investing, especially for beginner investors. Interestingly enough, all three mistakes are closely tied to one’s emotions. Remember, 30% of successful investing is strategy, and 70% is managing your psychology!
Luckily, Whale helps regulate your emotions, allowing you only to take rational actions based on facts.
News is short-term conclusions and is almost always manipulative and irrelevant for long-term investors. .It's common to see a bad review on a company with a falling price stock, only to hear that the price jumps back up within the next two weeks.
The news often leaves amateur investors feeling one of these emotions; panic, fear, or greed.
Avoid falling into the news trap at all times! As long as you hold great businesses with solid financials, you've nothing to worry about!
Another mistake to avoid when investing is getting caught up in emotions. There is a very famous quote by one of the most successful investors in the world, Warren Buffet. Be fearful when everyone else is greedy, be greedy when everyone else is fearful.
If you are getting fearful simultaneously as everyone else, you're likely to panic and sell.
If you're getting greedy at the same time as everyone else, you're likely to buy at an expensive price or over-allocate in a stock.
That's why Whale is emotion-free, only functions based on long-term strategy, and helps you achieve results that only the 10% of investors can achieve.
The best way to avoid losses is always to be aware of the risks involved in any investment, no matter how much you believe in the company. Diversification is key in avoiding losses - by investing in a variety of companies and sector, you minimize the risk of losing everything if one particular investment goes sour. Mistakes to avoid investing may sound simple however, they are crucial to long term investment success.