Top 5 Mistakes New Investors Make and How to Avoid Them
1. Timing the Market
As a new investor, most people often try to time the market, waiting for dips to invest, instead, adopt a disciplined approach like Systematic Investment Plans (SIPs) for consistent growth.
2. Investing Without a Goal
Investing without clear goals can lead to panic selling during market downturns. Define your financial goals first to stay disciplined.
Don't put all your eggs in one basket! Relying solely on a single asset class, like stocks, leaves you vulnerable during market uncertainties
3. Sticking to Only One Investment
4. Chasing Trendy Investments
Remember the times when crypto was all over the internet. I am sure many inexperienced investors bought those. Invest only in assets you genuinely understand, not just what's popular.
5. Being Impatient
In investing, actual money is made if held for a longer duration, but new investors lack patience and expect results quickly. So, stay patient and let the compounding play its magic.
6. Not Having an advisor
Most investors start investing by themselves or by taking advice from friends & family. Hire a fee only qualified financial advisor.