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These Are the 5 Biggest Investing Mistakes, According to Financial Professionals

Since 2020, more retail investors have entered the markets than any other year in history. This is because of the growing market bubble, and fear of missing out. 
As everyone piles into overpriced stocks, and cryptocurrencies, in hopes of them rising further, they often ignore the extreme risks of potential market crashes, economic downturns, and investment losses. Here are 5 common mistakes investors should avoid:
1. Investing in Something You Don’t Understand
This is one of the most common mistakes made by first-time investors: they invest in an enterprise with a business model that they don’t fully comprehend. 
When it comes to crypto, theres thousands of projects that claim to have invented “groundbreaking” technology. But have they really?
Using fancy words, and confusing charts may give the illusion of value, but in reality, no value actually comes from it. Make sure you’ve done sufficient research into the projects you are investing in.
2. Making Emotional Decisions
Humans are naturally reactive, and emotional beings.
Without proper experience in the markets, the overwhelming majority will face an emotional rollercoaster.
You, reading this, probably remember a time when you felt extreme greed, or fear. 9 times out of 10 these emotions can do damage on your portfolio.
In this Twitter thread, I go over 10 effective tips for controlling and minimizing your emotions whilst trading:
Human psychology can be extremely influential on our trading behaviour, and should be studied accordingly.

This thread will provide 10 effective tips for controlling and minimizing your emotions whilst trading. 👇 👇
3. Lack of Patience
Investing requires a great deal of patience. Conversely, making rash decisions, in any endeavor, can be problematic. Most of us have been trained by society to expect “instant gratification.” The truth is, life doesn’t work that way and neither does investing. Investing requires patience.
A slow and steady approach to portfolio growth will yield greater returns in the long run. Expecting a portfolio to do something other than what it is designed to do is a recipe for disaster. This means you need to keep your expectations realistic with regard to the timeline for portfolio growth and returns.
4. Trying to time the market
On the surface, aiming to buy assets when prices hit rock bottom and to sell when they’re at their peak seems like a good strategy. The problem is that most people can’t predict exactly when the prices will hit their optimum point. And missing even just a few good days in the market due to poor timing could leave you hundreds of thousands of dollars poorer. 
That’s why it’s not surprising that 50% of financial professionals list market timing as a top mistake. This is also easy to avoid, though. Dollar cost averaging, or buying assets on a regular schedule over time, eliminates the need to determine the perfect moment to buy.  
5. Having unrealistic expectations of returns
It’s important to make reasonable projections about how much your investments will earn.
Unfortunately, 43% of financial professionals indicate that unrealistic expectations of returns is a major mistake investors are making. To avoid this, look at the historical performance of investments you’re considering, and study the fundamentals of any stock or cryptocurrency you plan to buy to assess its realistic potential. 
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CryptoWhale @cryptowhale

Financial Analyst | Contrarian Investor providing in-depth Crypto + Stock research. Non-Biased/Non-Emotional Trading.

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