Join our daily newsletter At The Bell to receive exclusive market insights
This week on Money and Investing, Mitch Olarenshaw and I break down five common investment mistakes that could impact your portfolio in 2025. With market trends shifting and emotional investing still a major challenge, they offer insights to keep your decisions grounded and strategic.
1. Panic selling
Market fluctuations are inevitable, but reacting emotionally by selling during short-term dips can cost you long-term gains. If you’ve done your research and invested in a solid business, focus on the fundamentals rather than daily price swings.
2. Buying based on FOMO
Jumping into an investment because it’s trending can lead to overpaying. Instead of chasing hype, consider using strategies like selling puts to enter at better prices, ensuring you’re making calculated decisions.
3. Letting losses run and cutting profits early
Many investors hold onto losing positions, hoping they’ll recover, while taking quick profits on winners. This imbalance can damage long-term returns. Setting clear entry and exit points before investing can help you stay disciplined.
4. Investing without a plan
Hoping for the best without a structured approach often leads to poor decision-making. Having clear criteria for entering, exiting, and managing risk is key to long-term success.
5. Overtrading
Constantly buying and selling in response to market noise can lead to unnecessary transaction costs and emotional fatigue. Instead of chasing every opportunity, focus on a select few investments with strong fundamentals.
For more info about Money and Investing you can go to the podcast; read The Wealth Playbook: Your Ultimate Guide to Financial Security and The Wealth Playbook on Audible.
Disclaimer: Wealth Magnet Pty Ltd (ABN 52 618 868 830) trading as Australian Investment Education is a Corporate Authorised Representative (CAR no. 1255231) of Grange Financial Services Pty Ltd (AFSL No. 488609).
The material provided in this article is for information only and should not be treated as investment advice. Viewers are encouraged to conduct their own research and consult with a certified financial advisor before making any investment decisions. For full disclaimer information, please click here.
