In an article I recently read about a new survey called Financial Fails, Bill Baldwin, former editor of Forbes Magazine was quoted as saying, “Most investment mistakes are self inflicted.”
Are your investment mistakes self-inflicted?
You probably said no because the article goes on to say, “Behavioral scientists have long demonstrated humans tend toward overconfidence and that overconfidence wrecks investing.”
According to the survey, 80% of people ages 18-34 think they understand investing.
So, that begs the question, if the vast majority of people understand investing, why are so many investment mistakes self-inflicted?
I spent over a decade learning how to trade the Forex market. So, I understand how hard it can be to truly understand any investment market.
But you need to be self aware from the beginning. If you think you are going to “the one” or “the exception to the rule” when it comes to investing, you are in for a rude awakening.
It is very import to enter into investment with the right expectations.
That being said, investing is a game changer.
I believe investing should be a part of everyone’s financial plan. But don’t take it lightly. This overconfidence will more often than not lead to self-inflected and costly mistakes.
If you want to see the role investing plays in my financial plan… get the