8 Common Mistakes Made By Investors


At Calamatta Cuschieri we are committed to providing unbiased financial advice. If you are a new investor just starting to learn the ropes, be sure to read through our Investment Education section, which provides a thorough introduction to the financial terms, products and services you will come across as you browse through our website.

If you are feeling a little uneasy about your investment plans, it is time to relax a little. Whether you are planning to invest in Bonds, Shares, Funds, ETFs or ETCs, you need an expert independent financial advisor to help you build a tailor-made investment portfolio. You can rest assured that Calamatta Cuschieri will provide the professional support you need.

To steer you clear of some investment pitfalls, we have compiled this list of 8 Common Mistakes Made by Investors, which we hope you will find helpful.

(1) Investing More Than They Can Afford

It is crucial not to invest more than you can afford. Your independent financial advisor will help you formulate a thorough and personalised investment plan tailored to your financial situation and your overall targets and goals. You should decide how much you wish to invest initially while planning your investment portfolio and keep to the amount decided upon unless advised otherwise by your financial advisor.

(2) Changing Strategy at Every Downturn

You need a cool head and resilience to get the most out of your investments. Equity investment in particular could be a long term investment, so don’t make a knee jerk decision in the event of a downturn. Seek the advice of your independent financial advisor when you wish to re-evaluate your investment portfolio before making any final decision to change your investment strategy.

(3) Attempting to Time the Market

Few investors have enjoyed long term success by simply trying to time the market. It is notoriously difficult to accurately predict market fluctuations in the future. Even if you do achieve success by selling prior to a downturn, you may not be so fortunate in gauging the best time to buy. Work with your independent financial advisor to develop a long term strategy with a diverse portfolio.

(4) No or Little Diversification

One of the best methods for reducing the volatility and risk of your investment portfolio is to make sure you have sufficient diversification in terms of individual funds or securities, investment style and asset class. Don’t put all your eggs in one basket, investment concentrations in one particular area is a large risk to take.

(5) Failing to Rebalance Investments Regularly

As an investor you should regularly communicate with your independent financial advisor and rebalance your portfolio to make sure it stays true to your original investment strategy. This can help you reduce the risk of your investment portfolio by ensuring your investments are weighted according to fluctuations in market values.

(6) Emotional Attachment

While you may think you are too level-headed to get emotionally attached to any particular investment, you would be surprised at how many seasoned investors fall prey to exactly this form of mishap. Be objective at all times and see each investment as a vehicle to achieve your set financial goals. Making decisions with your heart rather than your head is definitely a mistake that could be costly.

(7) Failing to Research the Market

If you have found the right independent financial advisor they will help you to build a personalised investment portfolio tailored to your specific financial goals. However, this doesn’t mean you should give up on your own market research. Keep track of movements in the market via our Traders Blog and then discuss them with your investment advisor.

(8) Failing to Secure a Trusted Independent Financial Advisor

If you are going to build a personalised investment plan for your future you simply must use a trusted, expert, experienced and credentialed independent financial advisors who will provide impartial and objective recommendations and will be available to carry out investment portfolio reviews when required. To make sure you receive the best possible level of support from an expert independent financial advisor, contact Calamatta Cuschieri for professional financial services you can depend on.