“Experience tells you what to do; confidence allows you to do it.”
Investors always think they can. I can win in the stock market. This is the same mistake I made during my early investment journey.
Yes, I made a lot of mistakes in my early stage of investing and I have learned my lessons. There are so many common mistakes you and me make, I would like to highlight a few as below,
1) I can time the market
There is no way you can time the market, no matter how good your technical analysis knowledge is. Do not try to time the market. Buy and sell in the short term will make you lose more money in the long run. Time in the market is more important than time the market!
2) I can beat the market
Personally, I never met an investor that can beat the market or anyone who knows any investor that can beat the market consistently. You can’t beat the market, trust me! The best you can do is trying to follow the average market return!
3) Buy low and Sell High
That is the biggest joke that you hear from experienced investors. It is not true and most investors are actually doing the opposite- buy high and sell low. When the market is in a bull run, everyone throws in money and most of us are doing the opposite during market downturn.
It is not easy to control your emotion during bear market, people are panic and they are not thinking of what shares to buy but instead thinking what other shares in his/her portfolio that they can sell!
4) I can select the correct stock
Hell no! You might be right 80 percent of the time but there is no way you can be 100% of the time right! Even Warren Buffet made mistakes by picking up airline stocks and he had to sell everything during
