5 common mistakes to avoid when investing in the stock market
💡 Quick Tip
Successful investing is not about being always right, but about making fewer mistakes than others. We review the most frequent psychological and technical traps that empty beginners' accounts so you can protect your capital.
The psychological factor
The stock market is not just numbers; it is psychology. Most investors lose money because fear and greed lead them to make irrational decisions at the worst possible times.
The 5 mistakes to avoid
- Market Timing: Trying to predict the "perfect moment" usually fails.
- No emergency fund: Never invest money you will need in the next 2-3 years.
- Following trends (FOMO): Buying because "everyone is talking about it" means you are likely late.
- Lack of diversification: Putting all savings into one single company.
- Checking prices daily: Investing is a marathon, not a sprint.
The solution: An automatic plan
Decide on an amount, choose a diversified product, and forget the financial news.
📊 Practical Example
Practical example with real numbers
Imagine you invest €3,000 in a trendy tech company without an emergency fund.
Three months later, the market drops 20% and your savings are worth €2,400. Suddenly, your boiler breaks, costing €800.
You are forced to sell shares at a loss to pay for it. If you had a €1,500 emergency fund in cash, you would have paid for the boiler while letting your shares recover.
