investor mistakes

Do you make these 5 Mistakes Investors make?

5 Mistakes that Investors Make

While these mistakes may seem like common sense, avoiding them isn’t always common practice.

1. Excessive and Active Trading

Active trading doesn’t work. It’s not free those costs add up and are a drag on your portfolio, as well as your tax burden (short term gains are taxed as ordinary income).

2. Forecasting and Market timing

Nobody can forecast the market consistently. Even the most well-informed professionals can’t predict consistently all the time. Just be patient. Good things come to those who wait.

3. Bear Markets = Financial Ruin? Not so fast

A bear market is when the stock market drops more than 20%. They typically last about 17–18 months. The one thing they all have in common: they are followed by a bull market that is stronger and has surpassed the old highs. If you carry through a bear market (even buying into it), then you will be more profitable.

4. Following the Financial News

The financial news is the enemy of the long-term investor. It is typically fear-mongering and causes you to make the previous 3 mistakes. If you normally consume the financial news, try going on a 7 day financial news ‘diet’. Then try for 2 weeks, then just stop altogether.

5. Your More Successful Buddy

Stop trying to ‘keep up with the Jones’’. The strategy that is right for them may not be the same for you. Make sure you customize your plans with what is aligned with you. Work with your advisor to see if something makes sense, don’t just follow someone else blindly.

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Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by Gold Family Wealth, LLC), or any non-investment related content, made reference to directly or indirectly in this newsletter will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this newsletter serves as the receipt of, or as a substitute for, personalized investment advice from Gold Family Wealth, LLC. To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to his/her individual situation, he/she is encouraged to consult with the professional advisor of his/her choosing. Gold Family Wealth, LLC is neither a law firm nor a certified public accounting firm and no portion of the newsletter content should be construed as legal or accounting advice. A copy of the Gold Family Wealth, LLC’s current written disclosure statement discussing our advisory services and fees is available upon request. If you are an Gold Family Wealth, LLC client, please remember to contact Gold Family Wealth, LLC, in writing, if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing/evaluating/revising our previous recommendations and/or services.

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