Time and again, investors make typical mistakes. This can be expensive. Here’s how to avoid the most common mistakes on the stock market.
To err is human: time and again, investors make typical mistakes on the stock market. But if you want to invest your money in shares, you don’t have to fall into every trap. You can find the top 3 most common stock market mistakes here.
Top 1 investor mistake “availability bias”
Risks are completely misjudged. Information that is readily available is heavily weighted by investors. This leads to a one-sided view. There are impressive examples in psychology, which you can read about in our white paper. Investors sometimes fall into the trap of availability bias, for example by simply extrapolating the latest stock market developments – whether bull or bear market – into the future.
Top 2 investor mistakes “loss aversion”
The fear of making losses and the inability to admit this in time and act accordingly are unfortunately widespread. This aversion is understandable, but more than counterproductive for the stock market business.
Top 3 investor mistakes “herd instinct”
Pack animals don’t have it easy on the stock market. Doing what everyone else does is not wise. Take a look at the results of an astonishing conformity experiment by scientists in our white paper – it’s unbelievable what blatant misjudgements the herd instinct can lead to!
Whitepaper
Die häufigsten Fehler bei der Aktienanlage
- wie typische Anlegerfehler Ihr Vermögen gefährden
- warum Angst vor Verlusten ein schlechter Ratgeber ist
- welche Warnsignale Sie nicht übersehen dürfen und 9 Tipps für Anleger
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Conclusion?
The biggest problem with investing in shares usually lies with the investors themselves: They are too emotional and act irrationally. But emotions are poison when it comes to investing in shares. What is needed is a cool head. Because share transactions are complex. Realizing your own limitations is certainly the first step to success. As a rule, only professional asset managers or investment advisors have the indispensable specialist knowledge and the necessary experience to invest successfully.
