DAVID THOMSON – Coronavirus: Three mistakes investors can make
Recent portfolio falls can be difficult to stomach and are unfortunately sometimes viewed through the media prism of what can feel like mass hysteria. In these difficult times it pays to keep a cool head and stick to your investment plan.
Summarised below are three mistakes commonly made in market downturns which may be helpful in managing your emotions around stock-market uncertainty.
1. Failing to Have a Plan
Investing without a plan is an error that invites other errors, such as chasing performance, market-timing, or reacting to market “noise.” Such temptations multiply during downturns, as investors looking to protect their portfolios seek quick fixes.