Mistakes investors make in the stock market to avoid! JOIN MASTERWORKS: Invest in blue-chip art for the very first time by signing up for Masterworks: https://masterworks.art/pandrea

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Mistake 1: Are you a trader? Are you a longer term investor? Are you a passive investor or more active one? Do you have a plan for the next 5, 10, 20 years? It is my belief that you should know what category of investor you fit in. Now this comes with research and learning as much as you can but it also comes with actually investing and trying things out. Nobody says you need to know what kind of investor you are without having actually gone out and invested - but at some point you need to put yourself in a category and stick to that based off what you’re most comfortable with
Mistake 2: The biggest hedge funds in the world have trouble beating this 10% return consistently- and when they do it’s not by a lot. An incredibly high return in the market would be something like 20% returns which only a handful of professional investors make. Now, let me be clear - this is on a consistent basis - just because you doubled your money one year doesn’t mean you can consistently do it every year. And I think this is an important thing to keep in mind and the sooner you learn to keep your expectations in check the more successful you will be over the long term
Mistake 3: So here is a question - have you ever tried to trade penny stocks with hopes you’ll make millions of dollars? Greed takes over, FOMO takes over - and this is a recipe for disaster. I invested into penny stocks back when I was high school - and if someone told me at the time that I’ll lose all my money I would look at them like they have no idea wha their talking about - and then I lost all my money.
Mistak 4: investing off recommendations or copying others portfolio. Now we already mentioned the penny stock example - but we all know not to do that now - but what about listening to people on forums, or YouTube videos. There are endless amounts of “not-financial advice” out there and making investments by what others are saying or what others are investing in is never a smart thing to do
Mistake 5: not researching the company you are investing in. This took me a while to figure out - do I really need to research Facebook? Google? Big established companies? I argue that you need to do this to make a worthwhile investment so that you can understand how the business makes money and therefore you can project out their success into the ever changing future much better.
Mistake 6: Next mistake you see all the time with not only beginners but more experienced investors - and that’s to have too much risk in one place. Now look - I am of the opinion that to grow huge amounts of wealth you should not over diversify. So if you are investing in 100 different companies in all the sectors possible to be “well diversified” then at that point just by the S&P500 and keep adding to that over your lifetime and you’ll grow wealth - not an insane amount of wealth - but enough to retire very comfortably. Now if you want to make real money you have to take more risk - but there is calculated risk and then there is stupid risk.
Mistake 7: Here is a mistake that is hard to fix because it goes against every instinct you would have - but in the long run it does more harm than good - and that’s getting emotional about a stock that you lost money on and waiting for it to rebound. Now you might be saying - hey Alex, but why should I take a loss on a stock - I’m not saying that - I’m saying if you are holding a stock and continuously dollar cost averaging into a position over many years and that stock just keeps going down then it might be time to re-evaluate the investment and move on.
Mistake 8: (Watch video for full breakdown)

I am not a financial advisor - none of the above video is meant to be taken as investment advice. I am just showcasing MY own strategy and my investments should not be tried and duplicated based solely off the information in this video for risk of losing money.