What's up you guys, sasha here in this video, i want to talk about the nine mistakes that beginners often make when they're starting to do investing. Now, actually, i said beginners, it probably applies to actually quite a large number of people. People who are not institutional investors are going to have a number of issues in the way they make decisions to do with investing in the way they pick the different stocks that they put money in. I want to cover them one by one.

I think all of them are quite interesting. In fact, further down the list are probably some of the more interesting ones that i have personally done that i have learned from, and i see people do all the time so make sure you stick around to listen for that now. Just before i go and dive right in it's a really important note that this is not any form of financial advice. I don't know you or your specific personal circumstances, so i can't tell you what you should or shouldn't do.

These are just very common mistakes that i see other people make all the time, and i think it's just really important to be aware of them, so that you don't go and repeat the same mistakes when you're making your own financial decisions mistake. Number one is overestimating your analytical skills. This happens all the time. I see people who sit there looking at various graphs that don't really understand people go and try to tell themselves they actually do understand.

They understand trends, they understand candlesticks. They understand the way all this works, but the truth is experienced. Traders experienced investors and managers of investment accounts trained for years to become actually knowledgeable and to understand exactly what they're. Looking for just because you went and looked at a youtube, video or follow a couple of people who tell you what to look out for on a youtube channel does not mean that you really do understand what you're doing i studied math at university.

I've worked in the financial services industry for quite some time. I've worked with private equity companies, i've worked on buying and selling entire companies portfolios and the way they're, valued and the way all of these things get calculated. So i have a reasonable understanding. I've worked in trading, i had a whole team that was trading and one of the companies that i worked at.

So i know bits and bobs about how this stuff works. But even i wouldn't say that i'm a pro trader or a pro person at actually managing the analytical side of investments, and i think a lot of people probably also should consider themselves to not be a pro when maybe they on the surface think that they know Everything there is to know about it. The truth is some of the maths involved can be really complicated, especially if you go anywhere beyond just basic stocks. If you're talking about any form of instruments, leverage cfds, if you're talking about anything to do with options, you really have to be incredibly smart and incredibly good at what you're doing to actually know the analytics well enough to be able to take advantage.

So people who are overestimate their analytical skills can get into real trouble because they might not actually be as good as they think they are. The second big mistake that i see a lot of people make is be a platform fan. Some people will say. I love this platform because it gives me these tools gives me these benefits that the other platforms don't or i got some free stocks and decided to continue using it.

Or i have my current account with this company and because they offer me a current account and they also have an investment side to their business. I, like the ease of being able to move money between them and use them. It is really really important to be absolutely agnostic about the platform. There are only three things you should consider when you're choosing a platform that are actually valuable.

They are the fees that you're going to have to pay, so the fees for managing the portfolio, the fees associated with the monthly or an annual running of the account, the fees for individual trades and any other fees of the platform charges make sure that you're aware Of exactly what you're going to be paying for the type of usage that you expect to actually have off the platform. Number two: is the protection you're going to get with the platform so exactly which country and jurisdiction is it registered under exactly where is your money held? Some platforms hold the money themselves. Other platforms hold money with big banks. There's certain things you need to know.

If you hold money in a platform that keeps its money with a big bank, let's say barclays that if you are looking for the financial compensation scheme, that any other money you hold with the same bank is actually going to be covered together. So if the total of all of those different piles of money is over 85 000 pounds, then your money is at risk. So it's just important to know where the protection is and the jurisdiction by which your money is being governed. And the third thing is the stock choices, so what kind of stocks are you looking to buy? Do you need the diversity and the number of different stocks in different jurisdictions, some platforms offer and others don't? Are you looking to invest in u.s markets in european markets and asian markets, something a bit more different, like south america, make sure that your platform that you're wanting to use has access to the kind of stocks that you want to be buying other than that? Actually, a lot of the other stuff is not as important i'm not talking about day trading here, i'm not talking about buying and selling loads and loads of stocks all the time every single day, i'm talking about just regular long-term, investing where you're probably not going to Make making very many trades, and certainly not very frequently, and so a lot of people say well.

I like this platform because it gives me the news it gives me all of these updates. It gives me all these different, charts and stuff like that. None of that really matters, because you can get all that information elsewhere before you go and make your investment decision typically you're not going to be very very quickly making those decisions in the spur of the moment, because you're trying to make the long-term objective of buying A company holding his stock for a long time and watching his dividends, roll in or it's share, price grow whatever it is that you're looking for, you probably can go and do the research in any other place that you want look at a few different places. If you want to do so, it's not really important for the trading platform they're using to go and show you a few small bits of news, because you shouldn't really be making a decision on the back of that anyway.

Also, a lot of people get very emotive with this. They say. I really love this platform, because it is nice in this way or it is good in this other way. It is important to let go of emotions and just try to make the most analytical decision possible problem number three, and i see this a lot.

I see this a lot with people. I've worked with in the past. I call it the winning gambler problem. Now you might know somebody like that.

I've known quite a few people like that you're coming to work on monday morning and the person sitting across the desk from you will say: oh man, i had a big win at the weekend. I placed a tenner on this particular football result and it came in and i made a lot of money. They will tell you about the one win that they had. They won't tell you about all the losses they had in the same weekend and the week before.

This is a very, very common issue, with trading as well as gambling people will go and focus on the one thing where they think they're. Making some kind of interesting play. They've bought a stock where there's a lot of volatility or they've invested in a speculative company or whatever it is, and that particular bet might be playing off. But a bulk of their investments might be going down at the same time and they'll just focus all of their attention on the thing they find interesting and ignore the rest.

It's important to just not only focus on the things that you find interesting or on the one or two bets that you're taking it's important to consider your overall position at all times. The number four mistake that i see a lot of people making is forgetting to smash the like button, go and smash the like button right now for the youtube algorithm before we get to the rest of this video. It is hugely important to get this video to be shown to more people and for my channel to be able to grow and reach more people more quickly. Please go and do it if you haven't done so already.

Next, let's talk about the actual number four: it is overvaluing micro and current trends, so a lot of people will go and look at where the graphs are going right now and they'll presume that the graphs are either gon na definitely continue growing in the same direction Or they're definitely gon na go and turn it's typically one of those two things that say: well, it's kind of reaching the bottom. So i think, if i buy now, is definitely going to change or hey it's on an apple trajectory, and i can see that there's a lot of good news about this company. I think it'll continue going on an upper trajectory looking at short-term and medium-term trends, and assuming that they are representative of what's going to happen in the future, is the worst way to do investing. It is often good practice to go and assume that the price of any particular thing actually reflects the combination of the value of that stock, the various speculations surrounding it and the market conditions surrounding it at that particular point in time, because something is going up, does Not mean it will either continue going up or definitely go down at some point in the future.

It means nothing for the future. In most cases, the factors that haven't been baked into current valuation, yet are the things that are going to determine the value of the stock going forward. A lot of people try to time their trades they're going to try to say well, i'm waiting for this to drop a little bit, because i think it will and then i'll buy a lot of times. This just doesn't work.

You go miss on a price rise because you've been waiting for the price to fall and vice versa. It's just often a really bad idea to assume that any trends that are currently happening are going to continue happening in the same way in the future. Number five mistake that is extremely common to people who are less experienced in trading is using personal preference or emotion when making trades. Now i'm slightly guilty of this, because i released a video very recently where i did an introduction to trading two one.

Two. I showed how the platform works, how you sign up, how you buy a few stocks and just to make the video a little bit easier to digest a little bit easier to follow. I made a few light-hearted comments about why i was buying the stocks that i was buying, i'm a little bit partial to a coke, so i'm gon na go and get myself somewhere between one and two cans of it. So let's go for 1.5 cans of coke.

Why don't we buy some disney? You can rest assured. Not all those reasons are actually why i was buying the stocks. In fact, i did quite a lot of research before i made that video and i decided exactly which stocks i was going to be buying exactly how much of those stocks i was going to be buying. I made it look a little bit less scientific than that, because otherwise the video would have been incredibly boring and incredibly difficult for people to actually watch a lot of people will buy stocks by companies that they personally admire or because they like the particular product.

The company has, and they use it, and they think that that is some kind of mark of the way that the future of the company is going to be and the direction in which the company is going in a lot of cases. That's a really bad idea. The best path with these types of decisions is to just ignore your personal view on things and try to make the best scientific analytical decision based on facts and based on the information you hold about the company as a whole and about the direction they're going and About some of the important decisions the company is making your personal opinion will very often not correlate at all with the way the company is going to be going in the long term. So it's just really important to try to set some of those biases aside.

Number six mistake which actually not just novices but people who are experienced over make as well, is going all in for the big win. This just happens so often people hear about this one company that is about to do something: nuts they're gon na go and do a big stock split they're going to go and get a big investment, maybe potentially they're about to go and enter a big index. They're about to go and release a new product, that's going to break everything and what they do is they're, going to invest a disproportionately high amount of money into that one company, thinking that they're going to go and get that one big win. And if that big win doesn't materialize or if the bubble that the company's been building burst and actually the share price drops 15 suddenly, a large proportion of your overall portfolio has gone down, and this can be incredibly difficult for people to take.

In most cases, it is actually a really bad idea to try to go and chase the winds, because in a lot of circumstances, it is very difficult to predict, which particular wind is actually going to come through and which one will not. In fact, if you look at the various studies that have been performed, if you look at the analyses of the various situations where people are trying to manually, predict the winners and pick their stocks that way, the vast vast majority of these people end up losing versus Just picking a balanced portfolio or better still, some form of an index fund, because those things have a lot less likelihood to go wrong. When you're invested in a multitude of different companies, where your risks and rewards are balanced and spread between a large number of companies. Number seven mistakes is not holding the name of the game when you're investing for the long term is to hold your stocks in most circumstances.

If the stock goes down, the worst thing you can do is panic, and this actually happens a lot and not just with beginners, not just with intermediate investors. It happens with institutional investors and large entities as well. Often, when there's a massive downturn, when the market is falling, when there's a big shock downfall on a monday or a friday, and they call it the black mondo, the black friday, whatever it is, suddenly shares begin tumbling and suddenly a lot of people go and see That and they begin panicking, they think. Oh, my god, my money is on the way down before it goes completely to nothing.

I need to go and take it out and what happens? Is they go and take the money out at the bottom of that curve, and almost always - and i know that - there's exceptions to this and there's some companies that completely go and die off and there's a lot of circumstances where what i'm saying now will not apply. But in a lot of cases the truth is that in the long run they will miss out on the massive growth from that point onwards, because they've taken the money out of the market at exactly the wrong time. If you look at the crashes of 2008 of the various crashes in the 90s and 80s, you will notice a pattern which is, whenever there's a crash over time. If you were to hold your stock at that particular point in time, it would relatively quickly bounce back to where it was, and from that point onwards it would continue growing.

If you took your money out and waited to reinvest, you would actually lose money versus somebody who just held their position and waited for it to play out if you're, making an investment in a particular company. Because of this very strong long-term potential that you can see in it, there's going to be always shorts and perturbations the company's always going to be going up and down for various market internal exogenous, whatever economic political reasons, it doesn't really matter if you're in for the Long term ability to hold the stock when things are tough is incredibly important. And what often sets aside the people who actually end up winning in the long term in the stock market, from people who don't? Who panic take the money out and end up missing out on the whole growth? Some people will take the money out and say i'm going to go and reinvest when it's really at the bottom and, generally speaking, they will often miss that bottom. There will be way out that wouldn't have missed on 20 30 percent of growth before they even consider reinvesting anything.

Maybe it's going to go down again. Holding when the times seem tough, when everything seems to be going downwards, can be an incredibly valuable skill in the long term. Number eight mistake that a lot of traders are simply not aware of, let alone actually make is not understanding taxes. Now, i'm not talking about the basics, which is whenever you actually earn income from the stocks.

Whenever you actually go and sell the stocks at the end, you have to go and pay capital gains tax. Most people are aware that there's something happening in there, but specifically with dividends and with international trading. There's a lot of fine nuances that you just need to know. If you're going to be playing in that game, if you're not aware of them, they might go and take you unawares when they actually go and happen.

For example, if you live in the uk and you're buying uk stocks, you will have to pay uk stamp duty. This is quite an important thing: it's a relatively small amount, but it's still important to be aware that if you're buying a uk stock, you will not actually be getting 100 of the money that you're investing in the stock and that's not because of the fees that The platform is charging it's because of uk government tax. The same goes for us stocks. If you buy new stocks and you live abroad, you're going to have to pay tax on the u.s stocks that you buy and in most cases the tax is not going to be quite as straightforward as it might seem.

The standard rate is 30 percent, but with a lot of countries the u.s has specific agreements, for example with the uk where i live, there's a specific agreement which means that with the holding tax on dividends, is just 15, you have to fill out a separate form In order for your rate to be reduced from 30 to 15 and in almost all circumstances that money is going to be deducted before you actually get the money paid to you by the platform, they're going to be doing it on your behalf and paying it to The us, so you won't actually have to do anything manually, but not being aware of this, might make you confused. You might go and notice that you're being paid less than what you expected, or you might not realize that you didn't actually invest as much money as you thought you did, and just knowing exactly what you're paying in these various different forms of international taxes is a Really useful thing in understanding what your long-term strategy will be. A lot of people will go and build a dividend. Investing strategy, not realizing that say, 15 of the u.s stocks, are actually going to be taxed at the point when the dividend is issued and suddenly all the calculations that we're making about which stocks to buy don't hold as much as they did beforehand and now.

We'll come to the last point on this list number nine - and this, i think, is probably the most important point of them all. It is the most important mistake. A lot of people make people try to time the market and begin investing or invest money at exactly the right point in time to say now it's not the right time, because the stock market is too aggressive, it is too low. It might be falling further.

There's various announcements coming up. The truth is the best way to invest over a long period of time is to regularly put money into the market when you get paid or at the same point, every single month, whatever it is, that works for you and to continuously do that month after month Year after year, because all the different fluctuations and all the different changes in the market conditions and whatever normally will average out if the stock market is going down, this will allow you to continue buying through the downturn, so the average value of the stock that you Hold and the companies that you hold it will actually be lower than if you weren't doing it. If the market is going up, it is important to continue investing, because if the market continues going up for a substantial period of time and you stop investing because you're waiting for it to fall, you might miss out on that entire amount of growth and the market May never fall to the same value as it is now you don't know what the answer is to exactly when the market is going to rise, when the market is going to fall, nobody does, but the one thing that you can do is to make sure that You minimize the risk of you being outplayed by the market moving in whichever direction by just having a regular investment schedule. So as long as you're aware that things will happen, sometimes you're going to lose sometimes you're going to win, but in the long run, if you're continuously investing a proportion of your money in a relatively safe, balanced portfolio such as an index fund, or something like that.

You are unlikely to be hit very hard by these fluctuations when you're talking about a period of years and the best way that money can be made over the period of time is just to keep investing at regular intervals. Now, if you guys found this useful, i probably have forgotten one or two things. If you have some really interesting ones that i failed to mention, please go and leave a comment below i'd love to read some i'd, love to go and participate by answering as many comments as i possibly can. If you're interested in videos about personal finance, if you're interested in videos about investing, if you're interested in videos about managing your money in a better way, make sure you subscribe to this channel, that is exactly what i talk about on this channel three times a week On a monday, wednesday and friday make sure you hit the bell to get notifications every single time.

One of my videos comes out if you haven't done so already, when i asked you in the middle of the video, make sure you go and smash that like button for youtube algorithm, please go ahead and do it. I would really really appreciate it. It would really really help me. Thank you.

Thank you. So much i'll see you guys in the next video uh.