The Top 10 Mistakes Investors Keep Making

After 17+ years of working with investors, I’ve noticed something interesting: the most common mistakes never change. Different headlines, new products, market booms and busts — yet people keep falling into the same traps.

Here are the 10 most common ones:

1.    Following Headlines, Not History

Investors react to the latest crisis, forgetting that markets have weathered wars, recessions, pandemics, and political drama — and still rewarded those who stayed disciplined.

2.    Treating Volatility as the Enemy

Short-term ups and downs feel scary, but the real risks are inflation, permanent losses, and abandoning your plan when patience is required.

3.    Believing in Market Timing

Trying to “dodge the drop” and “catch the rise” usually backfires. The best days often arrive right after the worst — and missing them can devastate long-term returns.

4.    Chasing Stock or Fund “Winners”

Hot tips, glossy brochures, or the “next big thing” are tempting. But history shows broad, low-cost, long-term diversification wins far more often than a lucky punt.

5.    Zooming in Too Close

Daily account checks and short-term performance comparisons create anxiety. Investing is a decades-long journey, not a quarterly contest.

6.    Overlooking the Cost of Fees

Charges are like termites — invisible but constantly nibbling away. Over time, they can make the difference between comfort and disappointment.

7.    Forgetting Inflation Never Sleeps

Cash feels safe, but rising prices quietly eat into its value every year. Inflation is the stealthiest destroyer of wealth.

8.    Letting Fear and Greed Drive Decisions

Markets rise and fall. Those who panic in downturns or chase gains in booms often end up buying high and selling low. Discipline, not emotion, protects wealth.

9.    Confusing a Product with a Plan

An ISA, a pension, or a fancy bond is just a tool. Without a bigger strategy aligned to your goals, they’re hammers without nails.

10.    Going It Alone Without Advice

“An investment in knowledge pays the best interest.” — Benjamin Franklin Investopedia
Please note it is important to remember that past performance is not a reliable indicator of future performance. The value of investments and the income they produce can fall as well as rise. You may get back less than you invested.

Approver Quilter Financial Services Limited Sept 2025.

Advice on cash held on deposit is not regulated by the Financial Conduct Authority.