I’ve made a lot of investing mistakes. Read this article to avoid years of losses & pain in 2 minutes. Here are 16 common investing mistakes & how to avoid them
- The Sunk Cost Fallacy.
When you’re losing money, it’s hard to cut your losses. I failed to cut losses in time because I thought “I’m down 50% already, how much lower can we go” And every time I did this, I regretted it. 50% is better than 0. Cut your losses.
2. FOMO
It’s very easy to resist the urge of aping into a coin that’s pumping. Everyone is talking about it. Everyone made millions, except you. It’s super hard to resist the urge of joining them. I’ve done this countless times & it’s always ended up in losses.
3. Not taking profits.
When I just started out, I had a $500 trade reach $11K (unrealized) by pure luck. I was euphoric — the adrenaline was pumping & I was staring at the screen 24/7. But I was greedy. I was hoping it would go higher & didn’t take profits. It crashed.
This is a big one that everyone does. In the bull run, everything was pumping & people didn’t take profits. When the market became bearish, the people who didn’t take profits & stuck to their bad bull habits suffered. A lot of the blood we’re seeing now is due to that.
