Script Pipeline

What are the biggest mistakes investors make? We asked a group of successful investors for the biggest mistakes they've observed over the years. Here's what they said. But first, a friend, the reminder that this is not financial advice. Mistake number one, not having a plan, which can allow emotions to drive investing decisions. Number two, trying to time the markets, which history suggests is tough to do. Mistake number three, panicking. Investors often end up doing it at the exact wrong point. Number four, too much concentration in your portfolio, such as only owning stock at a company that you work for, only to see something happen that impacts the value of those shares. Number five, ignoring risk management, such as limiting the amount of your portfolio that is exposed with each trade you make. Number six, not using limit orders. Those help you know exactly the price you're buying or selling at. Number seven, discounting stock market history. The stock market has still been a huge winner over the long term. Eight, forgetting about compounding. Reinvesting dividends can help total returns. Mistake nine, being fearful of volatility.