How to avoid it: Markets are unpredictable in the short term. Find fundamentally strong companies that can create long-term wealth.
How to avoid: Don’t chase every hot tip. Invest in companies you believe in and hold them for the long term.
How to avoid: Ensure that valuations are reasonable, but don’t wait for a particular price.
How to avoid it: Even investing greats make wrong calls. Be open to new information and change your decisions accordingly.
How to avoid it: Your investment calls should be based on your own research, goals and risk appetite. Don’t mindlessly follow what others are doing.