Five Investment Mistakes Worth Avoiding

We’ve listed “helping you not blow yourself up” as a reason for having an advisor countless times over the years. And indeed, this is what we strive to do! But in all this time trying to prevent it, we’ve never told you how.

So, here it is! The guide to blowing yourself up in your investment journey.
 

• Day trade without the information of day traders. The big players have all the up to date information, far faster than we could get it. But hey, we’re all fortune tellers, right? We can predict the future.
• Panic out of investments at the bottom. The market has dropped, the declining value of my accounts is frightening me. Sure, I’ve heard to buy low and sell high, but I need to get out of here! I need to save my money! I can’t wait for the markets to recover, I’ll just cut my losses.
• Forget that equities represent real companies and real people. This group of letters and numbers on the screen looks like nothing to me. Why would I invest in something that looks like nothing? It’s not like it represents pieces of many of the best companies in the world.
• Treat an investment account like a chequing account. This investment that can fluctuate in value in the short term looks like a great place to put the rent I need next month! It’s not like it can change in value between now and then, right?
• Concentrate in only a few stocks. Apple is the best company in the world! Why would I invest in anything else? I don’t care about diversifying my money to protect it. I’m all in!

We’ve discussed why acting on these points lead to poor investment outcomes in the past, but if you are fuzzy on the reasons or want a refresher, please reach out to us! Your investment plan belongs to you- it’s important that you understand the rationale as well as we do!

This information has been prepared by Olivia Penner who is an Associate Advisor for iA Private Wealth Inc. Opinions expressed in this article/post are those of the Associate Advisor only and do not necessarily reflect those of iA Private Wealth Inc. iA Private Wealth Inc. is a member of the Canadian Investor Protection Fund and the Canadian Investment Regulatory Organization. iA Private Wealth is a trademark and business name under which iA Private Wealth Inc. operates.