(AVOID THESE) Top 5 Investing Mistakes Most Beginners Make

Описание: In this video, we talk about 5 common investing mistakes and misconceptions that beginners should avoid.

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In this video, we talk about

00:00 5 common investing mistakes beginners should avoid

Investing your money is something that we think everyone should do because it helps you build your wealth over the long term and achieve your financial independence.

The problem comes when many new investors don’t really know what they’re doing, and turn to advice from family or friends for guidance. We're not saying this is a bad idea but in most cases, they’ll be equally as clueless as you.

So, we decided to come up with some of the most common misconceptions beginners make when starting their investment journey.

(1:58) 1. Investing is very risky

This statement is actually true.Look at the drawdown that happened in March, many portfolios saw their value drop by nearly half!

It’s never a good sight seeing your hard earned cash vanishing over a period of weeks is it? Well since then, stock markets have fully recovered.

What we need to realise is that, not investing your money is even riskier! Inflation chips away at our money every single day that it’s not being put at work.

So, investing is risky, but not investing is even riskier.

(4:01) 2. Investing requires a lot of money

A lot of people tell us that they don’t have enough money to start investing. There’s a general feeling that only rich people can invest and everyone else can’t. Previously, this was probably a case due to high fees and capital requirements.

These days though, things are super different. Companies like StashAway are really starting to break these barriers down, and you can start investing with as little as RM1. Seriously.

It’s better that you make your mistakes when your capital is small anyway. Learn from them and when you start accumulating hundreds of thousands of ringgits which I’m sure all of you will, you’ll know what to do!

(5:28) 3. Being too confident or optimistic about stock prices

Because of the recent economic meltdowns, this one is super popular. Stocks in the airline, financial, & OG industries have taken a beating but unlike the overall market, they haven’t quite yet recovered.

This is where new investors make a mistake. They see that a company’s stock price drop from $15 to $5 and think to themselves, “what a great opportunity to buy because it’ll surely go back to $15 right?”

Well, thats not always the case. Many of these companies will go out of business and we don’t want to hold stocks of companies going bankrupt.

The same can be said for investors who own shares of companies that have dropped in price a lot. They think to themselves “I’ll just hold on till I breakeven then I’ll sell”.

Instead you should do a proper analysis of whether the drop is justified due to change in fundamentals and if it is, it’s time to admit defeat, sell your shares, and move on.

Don’t buy a stock just because the price is low. More often than now, its cheap for a reason. If you really want to invest in these companies, make sure you do your proper due diligence and really understand the business and how quickly it can recover.

(7:40) 4. Waiting for the 'right' time to buy

Another popular one these days. In contrast to the industries that are suffering from this, technology, software, & e-commerce companies are booming.

I mean, it makes sense right? As we’re required to work from home, more companies are integrating Office 365 in their workflows benefiting Microsoft. We can’t go out shopping so we buy stuff from Shopee or Lazada.

Because of this, revenues, earnings and stock prices of these companies are skyrocketing.


(11:05) 5. Share price represents a company's value

Watch the video to find out!

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