Investment mistakes can cost you. Here’s the expert strategy to keep your portfolio on track.
Transcript:
CONWAY GITTENS: And so what’s one investment mistake you see people making over and over again. And how can how can it be avoided?
MONA MAHAJAN: Yeah, probably the top investment mistake that folks make is letting their emotions dictate some of their investment decisions. And we see that in different types of markets as well. If you see big drawdowns in the markets, we know that corrections are part of any given market cycle, but if you haven’t been through many market cycles, you may, may see some of these drawdowns and think it’s time to get out of the market. So what we’d say is the number one thing to think about when you are starting your investment journey is time in the market is much better than timing yourself in and out of the market.
And I always say when you kind of time yourself in and out have two decisions to make when you’re going to sell and when you’re going to buy to get back in. And so what we’d say is for many, many investors, this idea of staying the course, being a long term investor, using volatility to your advantage to add to investments rather than selling at that point. Those are the types of thought processes and those are the type of strategies we really want all investors to embrace. Not letting emotions get the best of you when you’re making investment decisions. And again, when you work with someone, this makes it a little easier because they are the ones that are guiding you and they are the ones that can take the emotions out of these decisions as well.
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