7 Investing Mistakes to Avoid — Step-by-Step Guide & Transcript

[00:01] started with investing, you need to know that there are some common mistakes that don't even realize they're making with their money and their investments until this video, I'm going to walk you

[00:15] you make that are currently making you poor or currently making you lose your mistakes. I will also talk about the reason why people make the seven mistakes. And most importantly, I will tell you what you need to do to avoid

[00:29] these mistakes. So, that being said, let's go straight to the point. Now, the first mistake is waiting for the right time to start investing. Now, you see, one thing I've come to realize is that waiting until you have more money to

[00:41] market looks green or is making money for everybody before you invest your money is the biggest mistake you can ever make in terms of investing and in terms of your personal finance. Now, here's the hard truth you also need to

[00:54] perfect time to start investing. And if you say you want to wait till maybe next year before you start investing or maybe don't know is that when that time comes, something else will definitely come up

[01:08] waiting for the best time to invest, trust me, you're going to wait forever. that the time in the market is one of the most powerful forces in wealth building, and that is because of compound growth where your money makes

[01:22] profit for you and that profit makes more profit for you and it goes on and longer you invest your money, the more money your profit or your money can make little amount of money. You don't need to start investing with like a very big

[01:37] little amount of money and increase that amount gradually as your income grows. So, in summary, to avoid this first mistake, I always advise that you start doesn't have to be a very big amount of money, but starting right now is what is

[01:53] important. And by the way, if you go Go Instagram page right now, I'm at the actually a pinned post right there where I said the best financial advice I can give to anyone is to start saving and investing at an early age. And that is

[02:07] helped me. I started investing at the of money. I was saving like 2,000 naira, 5,000 naira so on on Carry Wise and Piggy Vest. And this was when I was in 100 level. At the age of 19 and 20, I

[02:21] started investing in stocks on the Trove app. And I even started making videos about them on this YouTube channel as at 2020, 2021. And I did not just stop at saving or investing 5,000 naira or 2,000 naira. I started increasing the amount I

[02:33] was saving or investing as my income was increasing. So, please take this advice very, very serious because it may not look big right now. You might say, "Oh, you are starting with just 2,000 naira, 5,000 naira." But, in a few years after

[02:46] now, you will always thank yourself for taking that decision to start investing or saving very early. Now, mistake number two is investing without knowing might sound minor to you or maybe you might not even know what I'm trying to

[03:00] thing is you need to know the reason why you are investing your money or maybe what you're investing for because this will have a massive impact on every the repercussion there is that if you don't know what you're investing your

[03:14] money for, then it means that you have no framework for making good decisions or good choices with money or with investing. And you end up making random lose your money or maybe you just go around copying what other people are

[03:27] doing or just go around investing in whatever anybody is telling you. And that is very bad for you if you are serious about investing your money. So, right now, what I want you to do is ask yourself, what are you investing your

[03:39] like an emergency fund or are you investing to retire comfortably or are you investing to buy property in the next 10 or 5 years or maybe are you stream for yourself Or maybe are you investing to grow generational wealth?

[03:54] Now, whichever of these reason you are investing for is what will determine your investment strategy. So, before you go ahead and put money into any form of investment or anything at all, please always write down what you want to use

[04:06] that money for or what you want that investment to do for you in the next 2 years, 5 years, or even 10 years. And this one decision right there will help strategy for you and also help you

[04:19] way, if you guys want me to make a video on this where I tell you maybe the best asset class or the best investment to put your money into based on your the comment section below. If more people ask for the video, I'll

[04:33] me know in the comment section below. So, that's mistake number two. Now, the third mistake is putting all your eggs in one basket. Now, I'm very sure this mistake from what I've just said, putting all your eggs in one basket.

[04:46] Now, the thing is that this is very popular, but I see this happen a lot. You see some people putting all their money, all their finances in one stock or maybe if it's crypto, they put all their money in one cryptocurrency. That

[04:58] is very, very risky. You need to know that you are taking a very big risk and you see, no matter how good an investment looks, it is never guaranteed to perform well forever, for eternity. No, it cannot perform well forever. The

[05:12] and down. Even if it's crypto, the crypto market goes up and down. If company, company can perform well for some period of time and it also perform badly for some period of time. So, when you have your entire portfolio in one

[05:26] thing, in one stock, in one crypto, in one property, it means that you don't have anything to fall back to if something goes bad with that investment. So, to avoid this mistake, you obviously need to diversify your investment. And

[05:39] when you spread your money across different asset classes like stocks, uh bonds, real estate, treasury bills, commodities, crypto, and so on, it means that you are making sure that a poor performance in one investment will not

[05:52] destroy your entire investment portfolio. And by the way, you also need to know that different asset classes move differently. What I mean by this is that when one asset class goes down, another one might be going up in your

[06:04] investing in stocks and crypto maybe maybe crypto is going down. And maybe in the next few months, stocks might be going down and crypto is going up. So, you always need to know the importance

[06:17] of diversifying your investment, right there. Very, very important. Now, before I continue with this video, I want to let you know that I have just launched my ebook on the Nigerian Stock Market Guide for beginners. Now, this is not

[06:29] there with bunch of loads that you don't learn anything at all. This one is you'll be learning from this new ebook of mine. Now, the first thing is that Stock Market works. A lot of people are just investing in stocks. They don't

[06:43] all. You'll be learning this in this ebook. The second thing you'll be stock before you even buy it. A lot of people don't even know how to analyze stocks at all. You'll be learning this in this ebook. The third thing is you'll

[06:56] be learning how to build a diversified stock portfolio that will be making you consistent income. Number four, you will also be learning how to invest in dividend stocks that can be giving you passive income consistently. And number

[07:09] management in the stock market, which is very, very important. A lot of people money. They don't understand risk management in the stock market. So, you'll be learning this in this ebook, too. And for number six, you'll also be

[07:22] diaspora. So, for those of you that are in the US, in the UK, or anywhere outside Nigeria, and also want to invest in the stock market, this ebook is for you. And lastly, you'll also be learning a realistic road map to building your

[07:35] first 1 million naira portfolio in the stock market, no matter your income at amount of money you're making every month right now, I stated or I built a way for you to build your first 1 million portfolio in the stock market.

[07:50] whole lot from this ebook. Now, if you're getting this ebook right now, you can get this for 50% discount. Yes, if you're getting this right now, you can get for 50% discount and it is only for the first 100 people. So, if you want to

[08:04] the first link in the description of this video or you can check the pinned comment on this video for the link to get the ebook. Thank you and let's go on with the video. Now, the next one which is number four is putting your money

[08:17] into things you don't understand. Now, I know this might sound very obvious, but it happens every day. It happens constantly. You see someone hear about then they just go and put their money into it without doing any form of

[08:31] research or trying to know what the investment is all about. Now, you see result is that you have no idea what the actual risk is. don't even understand what to look out for to actually know whether an investment is actually good

[08:45] or not. And when something does go wrong, which is always possible, then it means that you have no way of knowing what to do when that happens. So, you in. And understanding what you're investing in doesn't mean that you need

[08:58] to become an expert in finance or an expert in investing. No, you don't need means is that you should be able to answer some basic questions before you here are some of the questions you need to answer before you go ahead and invest

[09:13] that you need to understand what is this investment all about. You need to understand how this investment is making money for people and you need to understand the risk involved in this investment. These three questions are

[09:26] very, very important and you should have answers to them before you go ahead and put money into any form of investment. And if you want to learn more about any books, you can go ahead and read articles, watch YouTube videos, listen

[09:39] to podcasts, ask questions, and please always use credible sources. And you need to also understand that the time you spend on the standing of investment never wasted. It will either give you the confidence to go ahead and put your

[09:53] money into that investment or it will save you from a costly mistake. Very, want to learn about different investments, we have those videos on our YouTube channel. Just go to our playlist section right there. You see a playlist

[10:06] ahead and watch the videos there. You'll learn about different investments that explained very well for you to understand. Thank you. Now, mistake number five is chasing whatever is popular or trending right now. Now,

[10:21] hear about an investment that is making money for people on the internet, they just jump at it. They put their money into it without any formal research. And they do that all in the name of I don't want to miss out. Now, you see that

[10:33] feeling is what is called FOMO, which means fear of missing out. And it has caused more financial losses than almost anything else when it comes to investing because this is something that will push you to make decisions based on emotions,

[10:45] which is wrong. And if you're that type of person, here is what typically you try to invest in something that is popular right now. You see, by the time it is popular enough for everyone to start talking about an investment, it

[10:58] means that most of the upside has already happened. It means that the people who made the big profit already gotten before the trend started. And by the time it is everywhere, by the time people are talking about it, it means

[11:10] time. So, when you feel the urge to actually put your money into an investment that everyone is talking about or that is trending, please always take your time to do your research. Please, very, very important. Now,

[11:23] mistake number six is expecting profit too soon. Now, you see, a lot of people they put their money into it today, they start making profit maybe tomorrow or maybe next week or maybe in next 2-3 days. That is not how you can start

[11:37] investing your money. That's not how you make money from investment. And that is you can ever make when it comes to investing your money. Now, you see when people actually expect quick results or maybe quick profit, they make dangerous

[11:51] decisions. And that is when you start running from one investment to another quick returns or maybe bigger profit. And if you are like that, you will eventually not even make any from any investment. You will even lose all your

[12:03] money. So, instead of doing this, what I advise you to do is just look for a good investment, a reputable investment, and put your money into it. And please, be patient because markets go through cycles. The stock market goes up and

[12:16] down. So, you can actually make money and you can lose money. And if you're that will make you lose your money, there are some safe investment that you can put your money into like treasury bills, like bonds out there. So, you can

[12:30] investments and do. And we have videos on these different kinds of investment, like I said. Just go ahead and check our channel or the playlist on how to invest guide you on these different investments. And also, I want to say

[12:44] to investing. Now, please don't always say that maybe because you invested in to go down, then you want to withdraw all your money. Now, that is not that you are just investing your money for like quick returns or maybe quick

[12:59] profit. It is not a get-rich-quick scheme. It is an investment that will gradually make money for you in the long term. So, please, always be patient when market will only reward people who are patient. And that is what separates

[13:13] investors who actually build wealth from the investors who just talk about it and seven, which is the last one, is neglecting to review and adjust your investment portfolio. Now, I want to be very careful right here because I'm not

[13:28] investment every day. Now, what I'm trying to say is that you should be reviewing them maybe every week or maybe every month or maybe every quarter. Now, need to know that your financial situation changes over time. There are

[13:43] will change. There are some times that your income will grow. There are some times that your risk tolerance can evolve and change. And the market also changes. So, the assets in your investment portfolio will also change in

[13:55] some ways as your income grows and maybe as your profit also grows. So, if you are not reviewing your investment or reviewing your portfolio, your portfolio can actually go in a different direction that you don't like. So, my advice is to

[14:07] always review your investment portfolio at least once in a month or maybe every week or maybe every quarter depending on how you have the time. Now, for me, I always review all my investments at the end of every month. And this way, I'm

[14:20] not just monitoring my investment. I know the assets that are doing well. I money. And I know the ones I need to be very careful about. So, please don't just invest your money in something and forget about it. Always monitor it. And

[14:34] That is what will actually make you to make unreasonable decisions. So, those should definitely avoid if you're investing your money right now or if you found this video helpful, please help me drop a comment in the comment section

[14:49] below telling me which of the seven mistakes you are guilty of. I want to know in the comment section below. I'll reply to all your comments. And please subscribe to Personal Finance Circle for more content like this. And please don't

[15:02] forget to get the Nigerian Stock Market Guide for Beginners Ebook. The link will be in the description below. Thank you for watching this video. I'll see you in for watching this video. I'll see you in the next one. Bye.