The Biggest Investing Mistakes You Can Do


So many people give all their money to investment companies and then feel regret when the market sours. Avoid what many others do wrong and create a solid portfolio. Educate yourself, take a lot of time, don’t invest everything at once. Being a good investor and not making investing errors involve not just picking winners, but avoiding losers. Some of the biggest investor mistakes happen when we miss obvious warnings signs about red flags that predict a potential failure. Here are the top investing mistakes that you can do. 

  1. Being a speculator instead of an investor

An active investor is usually defined as one who puts their money into long-term investments in the stock market. They tend to hold onto their positions for at least a year, and often for much longer. Active investors conduct research in order to identify stocks in solid companies with promising futures.


  1. Not taking advantage of market downturns

In difficult market conditions, having this strategy on hand can help you stay in the game.

If you’ve managed to survive the dot com bust of 2001, but still have a few dot-bomb stocks in your portfolio, selling them now is the same as tossing money out of the window. There’s no guarantee that tech stocks won’t suffer another crash, but if they do your portfolio could benefit from being able to buy low.


  1. Not consistently investing is a big mistake

The board is in for the long haul. Investing mistakes can happen when you don’t expect it.  Naturally, how you feel about that statement depends on your investment horizon.   If you are primarily a trader who doesn’t have the stomach for big moves in either direction or just wants to set it and forget it, then this board might not be for you. However, if you are willing to ride out some chop, then you will find that making the right call can result in very significant capital gains over time. Our long-term focus cuts out the noise of daily price fluctuations and allows us to concentrate on investing via high-quality businesses with strong competitive advantages.

When to buy Long-term investment or short-term trading? To make this choice you need to have a clear understanding of the situation and requirements. You must focus on your trading plans and goals. When you don’t buy into stock during a large drop in price and then it begins to rise again so that you are able to sell at a profit. Old investors’ adage: “Don’t try to buy at the bottom and sell at the top.


  1. Not having a long time horizon

Because momentum is the biggest component in today’s markets, it’s critical to be looking for stocks that have already been running. This is where I like to use my point & figure charts which allow me to see the big picture and identify stocks that are moving. One of the biggest investing mistakes is not having a long time horizon. Not every startup will last ‘til 2021—some will die along the way. We’re prepared to learn all we can and put our knowledge to work for our next venture. The millennial generation has a more cavalier attitude toward consumerism and that is reflected in how they buy. Marketing to millennials means making shopping a less serious, more enjoyable experience. If you haven’t been to HomeGoods lately, check it


  1. Sell out during declines

The first advance indication of an upcoming sell-off is for stock prices to begin moving downwards. Therefore, it is often better to sell off after a stock price has started down because this indicates an impending downward movement. By selling out just as fast as they hit the market, these stocks suggest that certain investors are particularly bearish on them and willing to bet against their success.


  1. Not being in the Market is the Top Investing Mistake

if you’re not investing in stocks, you’re missing out on the single biggest, most powerful wealth-building tool of your lifetime. If you’re still working at a job, you can’t afford to ignore this book. Most individual investors are not investing in the stock market. In fact – only 10% of all Americans own any stocks at all. Should you join them? The answer is a resounding “yes.” In this personal finance guide, we’ll bust some of the myths about investing and help you get started with the basics: how to choose good stocks, what to buy, and when to sell.



Investing in the stock market is a super exciting venture, but it can be a pretty disheartening field to enter as well. There is so much jargon and seemingly complicated information surrounding the topic that most people don’t even know where to start. In order to get you started on understanding the market and investing 101, here are some of the biggest mistakes that you should avoid when starting out in investing.



Securities offered through Securities America, Inc., member FINRA ( /, a separate entity. Lee Michael Murphy is licensed with the California Department of Insurance, License 0H18660. Lee Michael Murphy is an Investment Advisor Representative with Securities America Advisors, a registered investment advisor The Free Retiree, Securities America Advisors, and Securities America Incorporated are separate entities. Career advisor Sergio Patterson, attorney Matt McElroy are not affiliated with Securities America Advisors or Securities America Incorporated. 

Securities America Advisors, Securities America Incorporated, and its representatives do not provide tax or legal advice; therefore, it is important to coordinate with your tax or legal advisor regarding your specific situation.

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