News
Common Mistakes in Investing
When looking at the future, investing your money can set you up for success in the long run. Investing money allows it to grow over a period of time, and if you’re investing in stocks, you decide when the right time is to pull your investment.
If you’re reading this, you’re likely brand new to investing. If so, congratulations! Try not to get overwhelmed — though we know investing can be scary. You don’t want to make mistakes or bad judgement calls, causing you to lose money. The reality is, there is no one right way to invest (if there was, we’d all be millionaires!). It’s all about what you can afford and what feels right to you, given your own individual finances.
While there is no one right way to invest, here are a few quick tips on how to avoid common mistakes to help prepare you for the journey.
- Invest without knowledge. If you’re not sure about an investment, get in contact with an advisor! It’s tempting to jump in on popular stocks/trends as they increase in attention, but it might not be the right investment for you.
- Keep a clear head. When you’re upset, you say things you don’t mean. It’s the same with investing! If an investment goes south, it can be easy to lose sight and make rash decisions. Always have a clear head before acting!
- Expand, but not too much. Everyone tells you it’s good to have a diverse portfolio — and they’re not wrong! You don’t want to put all your money into one company or sector. However, you also don’t want to get too out of hand. Too many different investments can be hard to keep track of, meaning you can’t actually measure your highs and lows annually.
If you’re looking for basic information on types of investments and other general tips, check out this awesome guide from Wealth Simple.
If you like to listen rather than read, here are some great Canadian podcasts on investment education and tips:
- The Canadian Investor
- Canadian Couch Potato
- The Rational Reminder Podcast
Investing is an exciting and wise way to increase your finances. The more you learn, the better you’ll become! We hope this blog has enough resources to help you begin your investment journey.