Steer Clear of These 5 Common Investing Mistakes

Avoiding Common Mistakes To Help You Keep More Money In Your Pocket

Author

Dividend Dominator
April 01, 2024

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The agenda for today:

👉 My investing strategy is simple…

👉 SBF got 25 years and has to repay $11 Billion

👉 5 things you should avoid at all costs when investing

“If you are not willing to own a stock for 10 years, do not even think about owning it for 10 minutes.”

- Warren Buffett

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5 Things You Should Avoid At All Costs When Investing

Buckle up!

Today we’re shining a spotlight on the 5 mistakes that trip up even the savviest investors.

As someone who has made these mistakes, you’ll want to avoid them at all costs.

1. Clinging To A Sinking Ship

When it comes to investing, holding onto losers is like trying to bail out a leaky boat with a teaspoon.

Unlike what you see in the movies, don't be the captain of a sinking ship.

Cut your losses, jump ship, and set sail for smoother waters.

There are plenty more fish in the sea.

How do you know when you need to jump ship?

  • There has been a fundamental change in the business

  • New management that’s not cut out to lead the squad

  • A material change that goes against your initial investing thesis

Just because the stock price fell, doesn’t mean it’s a bad investment.

In fact, it may be time to buy more at a discount. Just make sure you know WHY the stock fell before making that decision.

2. Falling Head Over Heels for a Stock

Love is in the air...

Or is it just the scent of your favorite stock?

Beware of falling madly, deeply, and irrationally in love with a company.

Remember, investing is a business transaction, not your favorite rom-com on Netflix.

Keep your heart in check, and let your brain do the talking.

Falling in love with a stock will make you blind to what’s actually going on beneath the surface.

3. Overtrading

The stock market is not a casino. If you want to gamble, take your money and go to Vegas.

You must resist the urge to play the slots and roulette with your hard-earned cash.

Instead of chasing every “opportunity” that you feel warrants your investment, sit back, relax, and enjoy the show.

Plan to hold for 10+ years and let compounding do the heavy lifting for you.

Remember, slow and steady wins the race...

4. The Dangers of Overconfidence

Confidence is key, but overconfidence is like trying to juggle flaming torches while riding a unicycle on a tightrope.

You might look impressive for a moment, but sooner or later, you're gonna crash and burn.

Stay humble and stay curious.

And never be afraid to admit you were wrong.

The most successful investors have been wrong a hundred times.

The difference is that they don’t see it as a loss, but rather a learning opportunity.

5. Riding the Hype Train

All aboard the hype train!

Next stop: Disappointment City.

Don't get swept away by the latest craze or shiny new toy in the market.

Before you jump on board, ask yourself:

“Is this the real deal or am I just trying to make a quick dollar?”

Don’t forget, trends come and go, but fundamentals are forever.

Final Notes:

Investing isn’t about how much money you make. It’s about how much you can keep.

The best investors are able to take past mistakes, learn from them, and make sure they never happen again.

Learning from the mistakes of others is the first step in leveling up as an investor.

Miss last week’s FREE newsletter? Read it below:

Diving into Dollars: Investing $1,000 in Today's Economy

How I would invest $1,000 if I was just starting today

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A Deep Dive Into Covered Call ETFs: Plus 2 Weekly Paying ETFs

Using covered call ETFs to boost your passive income

See you in the next one!

Alex (The Dividend Dominator)
Founder and CEO of Dividend Domination Inc.
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