There are 3 common mistakes I see investors make:
First, they invest emotionally, not logically.
Example: American Express went down to $9 a share in 2009. It was the Financial Meltdown because everyone was SELLING!!! I was BUYING at $9.
Now it is 9 years later in 2018. That share of AXP sells today for $99!!!!! Buying Low and Selling High Works. That is what defines the AIM investing method.
Second, they invest like the herd.
These investors keep buying as the price goes up & up – just like everyone else causing the price to go up. They sell if the price goes down – just like most other investors.
Investors should do the exact opposite – buy more when prices go way down and sell some when prices way up. This is contrarian investing and that is exactly what AIM instructs you to do.
Third, most investors take a short-term investing approach.
You need to invest for the long-term. I have one portfolio of Dow Jones stocks that is up 966% in 24 years ($15,000 grew to $166,000). That portfolio still has the same 10 stocks it started with! These are safe, reliable stocks that won’t disappear. Yet thanks to AIM, my returns are not boring, they are great! Reliably so because AIM is Automatic Investing Management.
Contact me to get my free investing book which explains the scientific, contrarian, and reliable AIM investing method.
Disclaimer: Jeffrey Weber is not an investment adviser and gives only his personal view and opinion, never making any investment advice or recommendation to buy or sell specific securities. Investors in financial assets must do so at their own responsibility and with due caution as they involve a significant degree of risk. Before investing in financial assets, investors should do their own research and consult a professional investment adviser.