The Profit Zone
Posts
Steer Clear of These 5 Common Investing Mistakes

Steer Clear of These 5 Common Investing Mistakes

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

Dividend Dominator
April 01, 2024

Welcome to The Profit Zone 👋

Where 12,700+ millionaires, CEO’s and high-performing entrepreneurs read the #1 financial newsletter on the web.

We’re teaching you what schools forgot in 5 minutes or less.

Happy Monday!

Let’s start the week off strong.

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

I have a very simple investing strategy:
1) I buy dividend stocks because cash flow is king
2) I buy ETFs so my portfolio has a solid base to grow on
3) I buy market-leading tech stocks with massive amounts of free cash flow for internal growth
Stop overcomplicating it
— THE DIVIDEND DOMINATOR (@TheAlphaThought)
Mar 28, 2024

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

- Warren Buffett

Markets YTD

Headlines Making Noise: Keeping You Informed and Empowered 📝💡

Keep More of Your Money

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

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

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.
Follow me on Twitter, Instagram and LinkedIn

Sponsor The Profit Zone

Want to get more eyes on your products?

Advertise to 12,700+ investors hungry for financial content.

Click below to book with us.

Did you enjoy this newsletter?

My Website - a one-stop shop for all things dividend investing.
Financial Domination - learn how to set up an effective budget, figure out your investor profile, use stock screeners and rebalance your portfolio without paying someone to do it for you.
The Complete Investors Accelerator Pack - everything you need to build a dividend portfolio that grows on itself. Learn more about dividend investing, how to analyze dividend stocks, what to do with your dividends and how to build a stream of passive income through the stock market.
Beehiiv - sign up for Beehiiv and start your own newsletter today.
TweetHunter - let the software do the tweeting for you. The only scheduler you’ll ever need. This tool makes me money in my sleep. Give it a try for free.

_Disclaimer:_{The publisher does not guarantee the accuracy or completeness of the information provided in this page. All statements and expressions herein are the sole opinion of the author or paid advertiser.}

_{Dividend Domination Inc. is a publisher of financial information, not an investment advisor. We do not provide personalized or individualized investment advice or information that is tailored to the needs of any particular recipient.}

_{THE INFORMATION CONTAINED ON THIS WEBSITE IS NOT AND SHOULD NOT BE CONSTRUED AS INVESTMENT ADVICE, AND DOES NOT PURPORT TO BE AND DOES NOT EXPRESS ANY OPINION AS TO THE PRICE AT WHICH THE SECURITIES OF ANY COMPANY MAY TRADE AT ANY TIME. THE INFORMATION AND OPINIONS PROVIDED HEREIN SHOULD NOT BE TAKEN AS SPECIFIC ADVICE ON THE MERITS OF ANY INVESTMENT DECISION. INVESTORS SHOULD MAKE THEIR OWN INVESTIGATION AND DECISIONS REGARDING THE PROSPECTS OF ANY COMPANY DISCUSSED HEREIN BASED ON SUCH INVESTORS’ OWN REVIEW OF PUBLICLY AVAILABLE INFORMATION AND SHOULD NOT RELY ON THE INFORMATION CONTAINED HEREIN.}

_{Any projections, market outlooks or estimates herein are forward-looking statements and are inherently unreliable. They are based upon certain assumptions and should not be construed to be indicative of the actual events that will occur. Other events that were not taken into account may occur and may significantly affect the returns or performance of the securities discussed herein. The information provided herein is based on matters as they exist as of the date of preparation and not as of any future date, and the publisher undertakes no obligation to correct, update or revise the information in this document or to otherwise provide any additional material.}

_{The publisher, its affiliates, and clients of the publisher or its affiliates may currently have long or short positions in the securities of the companies mentioned herein or may have such a position in the future (and therefore may profit from fluctuations in the trading price of the securities). To the extent such persons do have such positions, there is no guarantee that such persons will maintain such positions.}

_{Neither the publisher nor any of its affiliates accept any liability whatsoever for any direct or consequential loss howsoever arising, directly or indirectly, from any use of the information contained herein.}

_{By using the Site or any affiliated social media account, you are indicating your consent and agreement to this disclaimer and our terms of use. Unauthorized reproduction of this newsletter or its contents by photocopy, facsimile or any other means is illegal and punishable by law.}

Join the conversation

or to participate.