Having reasonable return expectations helps investors keep a long-term view without reacting emotionally.

Expecting Too Much

Often, investors focus on short-term returns or the latest investment craze instead of their long-term investment goals.

No Investment Goals

Diversifying prevents a single stock from drastically impacting the value of your portfolio.

Not Diversifying

It’s easy to focus on the short term, but this can make investors second-guess their original strategy and make careless decisions.

Focusing on the Short Term

Investor behavior during market swings often hinders overall performance.

Buying High and Selling Low

One study shows that the most active traders underperformed the U.S. stock market by 6.5% on average annually.

Trading Too Much

Fees can meaningfully impact your overall investment performance, especially over the long run.

Paying Too Much in Fees

While tax-loss harvesting can boost returns, making a decision solely based on its tax consequences may not always be merited.

Focusing Too Much on Taxes

Review your portfolio quarterly or annually to make sure you’re staying on track or if your portfolio is in need of rebalancing.

Not Reviewing Investments Regularly

Too much risk can take you out of your comfort zone, but too little risk may result in lower returns that do not reach your financial goals. Recognize the right balance for your personal situation.

Misunderstanding Risk

Often, investors don’t actually know the performance of their investments. Review your returns to track if you are meeting your investment goals, factoring in fees and inflation.

Not Knowing Your Performance

Negative news in the short-term can trigger fear, but remember to focus on the long run.

Reacting to the Media

Historically, inflation has averaged 4% annually. Value of $100 at 4% Annual InflationAfter 1 Year: $96After 20 Years: $44

Forgetting About Inflation

Market timing is extremely hard. Staying in the market can generate much higher returns versus trying to time the market perfectly.

Trying to Time the Market

Check the credentials of your advisor through sites like BrokerCheck, which shows their employment history and complaints.

Not Doing Due Diligence

Taking the time to find the right advisor is worth it. Vet your advisor carefully to ensure your goals are aligned.

Working With the Wrong Advisor

Although it can be challenging, remember to stay rational during market fluctuations.

Investing With Emotions

High-yielding investments often carry the highest risk. Carefully assess your risk profile before investing in these types of assets.

Chasing Yield

Consider two people investing $200 monthly, assuming a 7% annual rate of return until the age of 65. If one person started at age 25, their end portfolio would be $520K, if the other started at 35 it would total about $245K.

Neglecting to Start

While no one can predict the market, investors can control small contributions over time, which can have powerful outcomes.

Not Controlling What You Can

Top 20 Investing mistakes to watch out for.

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Money & Investments

The 20 Most Common Investing Mistakes

You focus on what’s outside your control.

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Productivity

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Motivation & Inspiration

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Habits

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5 Habits That Are Killing Your Productivity

"Wall Street is the only place that people ride to in a Rolls-Royce to get advice from those who take the subway."

"The main purpose of the stock market is to make fools of as many men as possible."

"One of the funny things about the stock market is that every time one person buys, another sells, and both think they are astute."

"An investor without investment objectives is like a traveler without a destination."

"If you are shopping for common stocks, choose them the way you would buy groceries, not the way you would buy perfume."

The stock market is filled with individuals who know the price of everything, but the value of nothing.

My favorite humorous quotes about the stock market. These quotes not only provide a good laugh but also offer valuable insights.

Stock Market Quotes

"The trouble with being in the rat race is that even if you win, you’re still a rat."

"You don’t get to choose how you’re going to die, or when. You can only decide how you’re going to live. Now"

"Everything that needs to be said has already been said. But, since no one was listening, everything must be said again."

"I think that the truth is always easier than a lie or an evasion. Easier to deal with, and easier to live with."

Share our collection of inspirational and famous quotes by authors you know and love. Share our Quotes of the Day on the web, Facebook, Twitter, and blogs.

My Favorite Quotes

"Rule No. 1: Never lose money. Rule No. 2: Never forget rule No. 1."

The market is a device for transferring money from the impatient to the patient.

The market rewards efforts, and punish the lazy.

Cut your losses short and let your profits run.

Calculate your Stop Loss first before your Target.

Don't catch a falling knife.

Trading is not about winning, it’s about NOT losing money.

Plan your trade and trade your plan.

Exit, not entry, defines the return.

Don't buy cheap stocks. Avoid the junk pile.

Money & Investing

Spending money to show people how much money you have is the fastest way to have less money.

﻿Happiness is just results minus expectations.

You can build wealth without a high income, but have no chance of building wealth without a high savings rate.

Be nicer and less flashy. No one is impressed with your possessions as much as you are.

Saving is the gap between your ego and your income.

Doing well with money isn’t necessarily about what you know. It’s about how you behave. And behavior is hard to teach, even to really smart people. Money—investing, personal finance, and business decisions—is typically taught as a math-based field, where data and formulas tell us exactly what to do. But in the real world people don’t make financial decisions on a spreadsheet. They make them at the dinner table, or in a meeting room, where personal history, your own unique view of the world, ego, pride, marketing, and odd incentives are scrambled together. In The Psychology of Money, award-winning author Morgan Housel shares 19 short stories exploring the strange ways people think about money and teaches you how to make better sense of one of life’s most important topics.

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Morgan Housel is a partner at The Collaborative Fund. He is a two-time winner of the Best in Business Award from the Society of American Business Editors and Writers, winner of the New York Times Sidney Award, and a two-time finalist for the Gerald Loeb Award for Distinguished Business and Financial Journalism. He lives in Seattle with his wife and two kids.

The 20 Most Common Investing Mistakes

5 Habits That Are Killing Your Productivity

Stock Market Quotes

My Favorite Quotes

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Ashutosh Rout