Firstly, it’s “Replaying the past or mixing up the past with the future” Don’t just assume that the last 10 years will be the same as the next. We can not sure of everything. You've got to look at the future and make your decision based on the investments’ prospects. I mean that you should not base on the inflexible methods but you can use it as an experience and make investment plans. The mistake no.4 is “Chasing the performance”
The point is an investor is chasing performance anytime he makes investment decisions favoring a fund because it has performed well recently. Many investors think that a fund with a great track record over the last year, 3 years, or 5 years, is a “good fund.” So they invest heavily in the fund precisely when its risk of under performance is highest. Next, I will talk about “Procrastinating”
You should know that time is your greatest ally. Once you have decided to get onto the Investment Ship, you are automatically given an ally. Time is an asset. Depending how you use this asset, it can work for you or against you. By postponing your investing, you are not utilizing the time asset. You might be looking for the right time to start investing. The best time to start investing was yesterday, but today is always better than tomorrow. Putting off investing for any reason is going to cost you much more in the long run than getting the timing correct. Meanwhile, whatever you do, start your investment plan today, as soon as possible. Now, we continue with the mistake “Misjudging your risk tolerance” Many investors have overly optimistic assumptions about their investments, and accept more risk than they should because of this. The longer you can stay invested, the lower your risk. But just how long do you have to be invested? It’s not just until you retire, it’s actually longer. Your retirement assets must support you throughout retirement. Essentially, you have to consider how much money you can comfortably afford to lose without losing too...
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