W3Schools

Money Brain: Here’s how to fix the biggest investing mistake you’ve been making

The biggest mistake in investing is also the most common: chasing returns.

This bad habit of buying stocks after they’ve gone up and selling them after they’ve gone down obviously does great harm to an investor’s long-term returns. The evolution of investor emotions over a market cycle tells the tale: As optimism gives way to elation, more investors pile into stocks at ever-higher prices. Then, as stock prices swoon and market turbulence swells, fear takes over and investors sell at lower prices — and the cycle begins anew.

You might think you are a better investor than most and therefore at little risk of chasing returns.

>>> Original Source <<<

Comentários