MENTAL MISTAKES THAT MAKE IT DIFFICULT FOR INVESTORS TO PROFIT IN THE LONG TERM
Many beginner investors fail not because of strategy, but due to repeated mental mistakes. Learn how overconfidence, fear, and poor mindset decisions
Many investors possess sufficient knowledge but still struggle to achieve consistent results. The cause is often not strategy, but rather recurring mental errors.
The following are some mental errors that beginner investors make, according to my personal observations.
One of them is a mental attitude that always panics when stock prices drop. I've discussed this issue in depth in another article about why beginner investors often panic when stock prices drop.
The following are some mental mistakes novice investors make, based on my personal observations.
Overconfidence After Several Profits
Initial profits often trigger overconfidence. As beginner investors, we begin to ignore risks and feel we are always right.
This attitude is actually dangerous because it results in less careful decision-making.
Fear of Mistakes and Fear of Acting
Conversely, some beginner investors are overly afraid of making mistakes. They hesitate to make decisions, wait too long, or continually seek certainty that never exists in the stock market. Doubt is okay, but don't overdo it, as it can lead to missed opportunities.
Difficulty Accepting Mistakes
Admitting mistakes is not easy because it's like branding yourself as stupid. Many investors hold on to stocks that are clearly problematic simply because they are reluctant to admit their decisions were wrong.
This attitude often increases losses. Comparing ourselves to other investors often triggers feelings of envy or dissatisfaction.
We then force strategies that don't suit our circumstances. The result is losses, not profits. Remember, every investor has different goals, capital, and risk tolerance.
Developing a Long-Term Mentality
A healthy investment mindset focuses on the process, not immediate results. Results can come quickly or disappear without a trace.
By accepting that mistakes and uncertainty are part of the journey, we gradually develop greater mental resilience.
This also explains why emotional management is more important than stock analysis in facing market dynamics full of uncertainty.
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ECONOMIC AND BUSINESS