Hey guys, it's sasha many people who are new to investing make a lot of mistakes when they first start out on their journey. I know i did when i was younger and i see a lot of other people around making them all the time. So i thought i'd go and make a video so that you can maybe go and avoid at least one of these and do better than i did. But don't worry.

I am not gon na go and tell you a whole load of pointless tips. Like mistake, number one being not investing at all but do listen up, because some of these might sound simple on the surface, but there is more to them than you might think now. The first mistake is extremely common and it is not doing your homework before investing. There are two sides to this.

First, you need to understand the asset that you are investing in and, second, you need to understand the numbers. This is critical if you are investing in a company and you don't even know what it is that the company does, what it sells, what products or services it offers. You already have a massive issue. How can you properly understand? There's business there's potential for growth, the risks around that and make any kind of proper assessment about the business before investing your money.

If you don't know what it is, they do and no saying that something is a tech company is just not good enough. You need to go much much deeper than that. The second part of the homework is the numbers. If you invest in something, you need to be able to understand the answer to just one question, only one question: what should the share price right now be? If that is the question that you do know the answer to then that decides everything.

If the current share price is above that or at that level, then you probably will want to be selling. If the current share price is considerably below that number, then you will want to be buying if you buy without knowing this number or knowing why that number is what it is, then you are basically just gambling, and in that case you have no idea as to Whether the share price should go up, will it go up or any reason for why it should go up in the first place, and that is not a good place to be. The next huge mistake is listening to fear, uncertainty and doubt with the amount of media that we all consume. This is incredibly common, and this is only growing as a thing.

I get this a lot with my personal investments in particular, because i have this youtube channel. Every time i go make a video about investing in a particular company. I get a whole flurry of comments and dms telling me that i've made a huge mistake. They asked me do i actually understand what i'm doing.

I must be incredibly dumb because i'm investing in this company there is absolutely no chance that this company will grow. Oh, but there's this other company that maybe you should be looking at instead, rather than the one that you have invested in, and i get told all the time that i know nothing about investing and i am a complete idiot, blah blah blah. I get literally dozens of these every single day, but remember one thing: keyboard warrior has become the most popular pastime for humanity over the past couple of decades. There is absolutely nothing.

It seems that people like doing more than sitting there and distributing hate hate on other people, hate businesses hate on whatever it is something that we all love, do. Just look at the media. Look at what they are printing look at what people are reading um. If you waste your time listening to this, then you are going to invest in a briefcase of money lying under your pillow, which brings me nicely to a very closely related point, but not quite the same, which is don't listen to social media and generally the press.

The sheer volume of rubbish, this information, incredibly bad information and outright lies on social media and in printed press is astonishing. It is crazy. People will try to promote the latest scam, get to try to get people to invest in the latest pump and dump set up investor groups on reddit discord and wherever and write comments like this random company. That i've never heard of until five minutes ago is definitely going to the moon.

I literally called out the cnn uh over the last couple days for printing something and voicing it on their channel where they said that tesla said something in the updates that they gave this week about their quarter, one performance that they literally did not say. In fact they said the exact opposite of, and and this is the cnn and this happens with all media - and it is much worse when you get to the social media end of things. The truth is the amount of genuinely good information is relatively low in these places and you have no real ability to discern the good stuff from the bad. So just don't waste your time.

Everyone out there has an opinion, but you don't have to share that opinion or to base yours on it. You don't have to process them. The truth is they probably won't help you, and at best they might only just see confusion. Next up is selling the dip.

This one sounds incredibly simple, but i'll see so many people making this mistake that i really wanted to go and talk about. It's particularly difficult because this mistake has a cousin called exiting a losing position, which is actually a very sound strategy if you. But you need to be able to understand what the difference between those two ears and when you're doing one versus doing the other holding onto a stock, regardless of anything regardless of any reason or argument. Because you believe in the company is a really pointless exercise.

And it is an extremely easy way to lose money, because you are trading on emotion and you act irrationally as a result, but selling when the share price has gone down by 15. When you have no good reason to other than the fact that the share price has gone down by 15 percent is an incredibly easy path to losing all your money investing because you only lose money at the point at which you sell. If you hold on to the stock you don't sell, then you haven't made a loss, share prices go up and down for millions of reasons, look at the stocking stock market chart or the chart of any company that you like, and you will see it jumping up And down a lot of people sell when the share price drops because of fear, they don't want the share price to fall even further and they're consent they're going to be losing even more money than they've already lost. The problem is: if there is then a bounce and you're sitting on cash, you might miss and in many cases will miss that entire bounce.

So not only do you pocket the loss that you've already made, you then have no chance of actually making it back up because you're sitting waiting to go and put your money back in because you're expecting it to fall even further. For example, i own a lot of tesla shares and their price has just gone and fallen by about 10 over the last 24 hours. Now, over the last three months, there's been about two dozen reasons why tesla price fell: five percent 10, 20 or even more. In short periods of time, whenever this happens, you just need to go back to the thing that i discussed in mistake.

Number one doing your homework reassess the numbers see if you still think that there is an upside to the company, see if you still think the share price is undervalued or if the circumstances that have led to this job are material enough to make you re-evaluate your Position if in most cases that, if actually materialize, if there isn't a change or if it's not a material change, then these are usually the best times to be buying, because you can potentially get a bargain and you can go and invest at a substantially lower price Than you could before without there being a particularly good reason why the next mistake is to go and copy what other people are doing. First, off stop listening to people in the news. Stop listening to people on youtube! People like me, schmucks like me, telling you what you should do, not listen to people on tick, tock or anywhere else, and definitely do not copy their investing decisions too. Many of these people that you're listening to know absolutely nothing about what they're talking about and how much do you know about the people that you're listening to and even then even if you do know something, sometimes these people will be right, but many times even experienced Professionals will be wrong and that is close to 50 of the time, even for the guys that often get it right.

You should always make sure that the one thing you do with investing is you make your own decisions sure take into account any information you come across, make sure you go and listen and find interesting facts points of view and take as much of that in as Possible alongside the numbers, but always make sure that the decision is yours, yours alone, and based on your own assessment of that collective pool of information. If you begin hearing that everybody is investing in something because it is the next big thing and it's about to explode, it can often be the exact opposite in terms of what you actually should be doing. Often these happen right at the peak of something just before it collapses. Often it it's just driven by fud by fomo fear of missing out by by people wanting to invest in something just because everyone else is doing it and that kind of explodes as a snowball effect, and the next mistake is trying to time the market.

I hear this one a lot from people who try to predict when a crash is going to happen. They go pull money out and they're sitting there on cash, hoping that by doing that, they can then buy in when the price has fallen. All these people will be waiting to buy something because they're waiting for the price to drop, so they can buy at a better price or they're waiting to sell because they think the share price might go even further and they just want to ek out that little Increment timing, the market is almost always a bad idea. The most likely outcome we're trying to tie in the market is that you will probably get it wrong.

The share price will not drop and you'll have to go and buy that share at a 20 premium versus where you could have bought it instead or the market will continue going up for six months after the point at which you decided to go and sell your Positions and the crash doesn't actually happen and you're sitting there wondering what is it that i did? There are endless studies, white papers, you can go and read all of them online by just doing a quick google that will show you that an investing strategy that tries to time the market will almost every single time fail and do worse than a strategy which does Not over the long term, the next investing mistake has become incredibly prevalent over the last 12 months, and it is this belief that investing should be a go big or go home strategy. You either need to make a 1 000 return on your money or lose it. That's it, there are only two potential outcomes: there's only two options see getting an eight percent return over a whole year is equivalent to failure, and yet that is the average growth of the market over the last 100 years and most actively managed funds, don't even manage To get that, if you're, investing in something and you're expecting to get returns of over 50 percent, you're almost definitely investing in the scam, if you're investing in something and you're being promised a 20 return or something like one percent per day. As i am seeing all the time at the moment, with lots of people asking me whether they should go put their money in it, you are almost definitely, in fact no not always you are definitely investing in a scam.

There's no ifs, there's no buts! Anything that promises you ridiculous returns like that is a scam the end, if you're investing in anything where you expect to definitely get over a 30 return per year over the next 12 months, you probably need to go back to step number one and redo your homework. Investing is an ultra marathon, it is not a 20 yard, sprint sure you can get lucky in the short term and you can go and win a lot of money if you're gambling, but constantly placing your money on red just means that there will be that one Time when you don't get the call right and when you do get it wrong and lose everything you really won't like it. When that happens, i hope you guys found this useful. If you have, please make sure you hit the like button for youtube algorithm so that more people can watch this video.

Thank you so much for watching all the way through and i'll see you guys later. You.