The Biggest Investing Mistake Most People Make

When it comes to investing, you can know every financial metric on a balance sheet. But none of that matters as much as behaviour.

The decisions that really move the needle are the ones made when markets are at all time highs or when they are falling fast. A correction is a drop of 10 to 20%. A crash is 20% and above. Both are normal parts of investing and both will test you.

Piling money in at all time highs is a common mistake. So is selling when markets drop and everyone around you is panicking. The investors who build real wealth are often the ones doing the opposite, staying calm and buying when others are fearful.

Investor psychology and behaviour. That is where the game is really won or lost.

General Advice Only. Robert Goudie is an Authorised Representative (No. 235974) of Consortium Private Wealth Pty (AFS Licence 495401).