Roberto Anzellotti @IlMatematico: "5 COMMON INVESTING MISTAKES EVEN..."

Italy

5 COMMON INVESTING MISTAKES EVEN PROS MAKE In the world of investments there are mistakes that even professional investors fall into, let alone the retail investor. Let's see what 5 common mistakes in the world of investments are and try always to keep them in mind to avoid falling into them. #️⃣ Falling in Love With a Stock Often, when we see a company we have invested in doing well, it is easy to fall in love with it. It is a stock that enhances one's ego and makes us feel great. At this point it becomes a fixed point in the portfolio and is never questioned even when it loses the fundamentals that characterized it. All stocks should be questioned, not when they do not perform for a few years (it is normal for a company to grow in cycles and therefore have ups and downs), but when they lose their added value. It is important to always remember that you bought this stock to make money. If the fundamentals why you decided to invest in that company change, you should consider re-evaluating the stock. #️⃣ Don't give the stock time to grow If a stock we just bought doesn't perform well, our instinct would push us to sell it even if the positive elements that pushed us to buy it persist and, indeed, improve. The market doesn't always recognize the quality of a company, but sometimes it takes many years. Be patient: do your analysis, buy, and hold while your investment thesis is valid #️⃣ Attempting to Time the Market Trying to time the market also kills returns. Successfully timing the market is extremely difficult. All experienced investors know it: it's not done. In-depth studies show that the timing of entry into a stock is irrelevant compared to the final profit that can be had from an investment. And yet the temptation is always to "wait for it to go down a bit", a bad idea: usually then the stock takes off and we can only buy it at higher prices (the same goes for when we want to start copytrading). #️⃣ Failing to Diversify Whether you are an amateur or a professional investor, sector diversification is important. Unpredictable events (such as COVID-19 or a war) could change or even destroy entire sectors of the economy, having assets that have appeared in uncorrelated sectors, allows us to cushion the effects of these unpredictable events. #️⃣ Getting Overcome by Emotions Perhaps the number one killer of investment performance is emotions. Investors should not let fear or greed control their decisions. Instead, they should focus on the bigger picture. Stock market returns can be volatile in the short term and may even take a long time to recognize the true value of stocks. But in the long term, historical returns tend to favor patient investors. There are many reasons for emotionality: fear of losing money, fear of missing out on the opportunity of a lifetime, or as in the case of professional investors or Popular Investors, fear of underperforming the market. Controlling these fears is essential to achieving positive and consistent results over the long term. I am @IlMatematico, and through my algorithms I try to extract value from the markets. Add me to your watchlist to stay up to date with all my news and movements on $BTC, $NSDQ100 and all the stocks in the $SPX500 !

Not investment advice. The author may have financial interests in the mentioned instruments.