Introduction
It is so important for me to continue to learn how to invest. I like to find out that how many mistakes I have made from 1999 to 2019. I can quickly name a few right now, but I like to get a complete list.
Mistakes I have made
I like to name the most biggest one.
- Time the market
- Inflation risk
- Buy high and sell low
- Recency bias
- Long term investing or gambler
- Human nature - fear and greedy
- Ignorance - not a learner
- Decision making - impulsive decision making
- Emotion not stable
- Business mindset - work on impossible goals, Ph.D. degree, US greencard, friendship, the most important goal is to build wealth and grow rich.
- Associate with wrong crowd
More detail
Time the market:
1. 2001 SOLD VIGRX fund - when the fund lost over $1000 dollar value from $3000 initial dollars investment.
2. 2009 Sold everything and put in Amtrust bank IRA CD
Inflation risk
There is 4% inflation risk. If I put 401 K and IRA into capital preservation fund, then I will lose 4% at least because of inflation risk.
Buy high and sell low
During times of financial stress, people lose 13 percent of their IQ points and make rash decisions, resulting in poorer decision-making, according to a study by Science magazine. It might be the reason why many people buy high while stocks are popular and prices are taking off, and sell low while they're panicking during a market downturn, instead of waiting until a stock price recovers a bit.
Recency bias
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