Investing for the sake of investing is ripe for failure because you're more likely to stop investing (or “steal” from them) if you want money for something else, like a vacation or a big house.
How to avoid this mistake: Set clear goals for your investments. Are you aiming for long-term growth or short-term gains? Do you want to retire early or just have enough wealth in your 60s to never worry about money again?
Diversification is a fancy word for not putting all your money in one company (or even a sector). Imagine you're at a potluck and you only eat one dish – if it's bad, you're out of luck!
How to avoid this mistake: Diversifying your investments is like having a well-balanced meal instead of just one type of food. To do it, spread your money across different investment options, like stocks, bonds, and real estate.
Picture a bunch of sheep following each other – not a great idea when investing! Why? Consider this: if the herd were always right, everyone would be rich, wouldn't they?