Some of the most common investment mistakes, in particular for investment beginners, will be shown and elucidated in more detail.
Some of these investment errors include irrational behavior patterns. We will have a more detailed look at some of the psychological biases.

Just as in almost every area of everyday life, professional players also have certain advantages over private individuals when it comes to investments. After all, they deal with this subject every day and therefore have the required know-how and, in most cases, superior technical equipment. However, this should not be taken as an indication that private investors and beginners are not in a position to achieve pleasing results from the stock market, provided that typical investment mistakes are consistently avoided and the approach is both systematic and methodical.

The following mistakes and biases will be covered:

• Resist short-term gains
• Limit your losses
• Forget about the purchase price
• Avoid following the crowd into fashionable investment choices
• Don’t let a negative prevailing mood sway your thinking
• Never invest in ‘surefire’ tips
• Avoid creating portfolios which are too one-sided
• Avoid investing cyclically
• Stay ready for action with good liquidity management
• The index is not the be all and end all
• Do not trust the historical performance of large investment fund companies
• Endlessly collecting information is not the key to success
• Don’t sell yourself short
• Don’t pin the blame on others
• Avoiding overconfidence
• Loss aversion and disposition effect
• Anchoring bias
• Herd behavior and trend chasing bias
• Fear of investing and fear of missing out
• Choice paralysis