7 Beginner Investor Mistakes (And How To Avoid Them)

#meaningfulmoney #meaningfulacademy #buildwealth
I've been helping people with their finances in a bunch of different ways for over 20 years, and I see beginner investors make the same mistakes time and time again. In this video, I want to cover the 7 biggest mistakes newbie investors make and show you how you can avoid making them.

Some additional resources:

Chapter markers:
00:00:00 Intro
00:01:04 Mistake 1 - Running before you can walk
00:02:20 Mistake 2 - Trying to time the market
00:03:49 Mistake 3 - Tinkering
00:04:58 Mistake 4 - Taking too little risk
00:06:11 Mistake 5 - Overthinking
00:07:27 Mistake 6 - Thinking too much of early wins
00:07:54 Mistake 7 - Ignoring costs

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Leave me a comment below - I read all of them and love hearing from you!

[keithhalliday]

Even though I've been taking a keen interest in investing for a few years now it's good to step back and listen to these tips. Tinkering is SO tempting. After watching this I'll be leaving things as they are. Great video. Even a 10 min video must take a lot of time to put together. So thanks again for this and all the other content.

[SensibleRider]

Pete, these videos are really slick (style) and provide beneficial information (substance). You also come across as authentic, trustworthy, and essentially a good bloke. Keep up the great work!

[RyanEmmett]

Although I've been investing for nearly a decade now I still regard myself as a beginner. But I've managed to avoid these mistakes apart from trying to time the market, and not giving enough attention to costs. Saying that, I bought into the market in the teeth of the March 2020 Covid crash, and I only use passive funds so my costs are not too bad.

[robw]

Tinkering was my biggest problem. My ISA was with a DIY platform and I couldn't help myself but swap funds all of the time. I have now moved my ISA to a do it for me platform where I can just choose a risk profile, set and forget. Now I just need to stop logging in as much to check it haha!

[ukulelalienation]

:))) I massively cocked up my first stocks and shares ISA by tinkering....I lost 20% of my £20k in about 2 mnts. Most of my cash now goes into a well known brand of index tracker funds and are doing super well. After being skint all my life I finally have a business that allows me to earn enough to fulfil my pension and ISA maximums (Making up for lost time...I'm 51) My intention is to stick my pension cash on index-linked funds and then be more playful with my ISA less tinkering....all the shares I sold at a loss have now expensive but valuable lesson. Thank you for your videos....they are super helpful. :)

[SpangleIt]

Amazing Pete, yes guilty of about five of these, been a passive investor over the years S&S Isa etc, but now looking at platforms. need to leave them to grow as you say and stop tinkering. watching you channel has helped me a lot, especially for my transition into retirement understanding the options for my pensions, thank you.

[natalieratcliff]

Thanks Pete - This is exactly the information I needed to get started and will finally be getting set up this week!

[gregpackman]

Avoiding tinkering and regular checking is the hardest part!!

[sandeeptanjore]

Brief, crisp and to the point! While the concepts that you have mentioned are universal wish there was some Canadian content out there.

[carlmeanwell]

I think I've made all of those mistakes at some point, all good learning experiences though! Thanks Pete

[CrappyProducts]

Tinkering was without a doubt the mistake I've made. Fortunately enough I was able to relax and allow it to do its thing

[vernonwells]

Pete great video, tinkering and timing the market a very tempting great tip to walk away for 3 months or more but so difficult!

[paulrichter]

I spotted at least two or three mistakes I've made, and still keep making! I fiddle with my funds every 3 months or so, thinking I can swap some low performing funds for better performing funds. On the other hand my wife has several funds which she just leaves alone generally perform consistently well, and most years her investments outperform mine! Overtime I've realised that its sometimes better to choose funds which perform at a lower rate but are consistent year on year. I also picked up from your own investment video that you use passive tracker funds rather than active investments (mine are all active). My new years resolution - I am going to have one more fiddle to change some of my low performing funds to passive tracker funds then leave them and try to resist fiddling! Thanks for all your videos, good sound advice.

[paulevans]

Great video Pete, very simply explained and very informative!! :-))

[majorscope]

Hi Peter, A lot of common sense here. Tinkering. I am sure a lot of new investors are guilty of this. A very bad habit to get into. By the same token you need to keep an eye on funds and consistent underperformance. ( I give it 2-3 years but i am only a novice). If after this time things have not improved i generally move on. Regards.

[jaseh]

Invaluable information on these videos Pete

[IanGandy]

Great video Pete I am new to investing and can see myself in all of those comments. These 7 mistakes will now guide me! Really well presented video.

[vinay]

Guilty of all of these!
Can you please make a video on the costs, especially on widely used platforms ? Would be super useful to get an idea. It’s my understanding that clean shares are cheaper in the long run, inspite of the initial stamp duty, if you have the stomach to weather the turbulence. Thanks again

[deanrobertnoble]

It’s definitely the psychological aspect that plagues many of us. I find constant reading about the right things to do, strengthens my resolve to actually do it. Morgan Housel outlines much of this in his book. Well worth a read from the point of observing the potential mistakes you’ve listed. I recall you interviewed him?
Great video. Many thanks!

[chicklechives]

My logic is that I'm less informed about everything I invest in than the big money is. The market has found a price, based on all the information I have and lots else besides. How could I possibly be more informed?