In this final edition of the Investing Made Easy series, I’d like to detail some common investing mistakes. Investing doesn’t have to be complicated but we make it so by doing some very silly things. In the end, our meddling brings nothing but frustration and lower returns.
I’ve already touched on a few of the most common mistakes in previous articles such as not having a plan, failing to evaluate one’s risk tolerance and ignoring investing fees. And of course we want to understand every investment into which we place our money. If we don’t understand it, we shouldn’t be investing in it.
I’ve noticed through the years however, that other, less obvious issues inhibit me from having the success I desire. Each of them have hampered my investing at one point or another and it was only through losing money and honestly evaluating myself in the mirror that I was able to overcome them. (“Overcome” is a strong word, because they still creep back up from time to time and I have to fight them off again and again.)