“You Look at What You Had, Not What You Have” and Other Investing Mistakes Suze Orman Blames You For

After some widespread panic among investors in early August, Suze Orman She appeared on her podcast “Women and Money” to discuss some of the biggest mistakes investors make, especially when navigating volatile markets and operating on strong emotions.

Not to be missed:

The first mistake: “You’re looking at what you had, not what you have,” Orman says. She points out that focusing on past gains instead of the total gains from your initial investment makes you feel like you lost money, when you simply didn’t.

For example, if you bought a stock at $30 and it rose to $110, you might feel like you hit the jackpot. But when that stock drops to $90, you might feel like you lost money, even though your initial investment tripled.

Trend: Commercial real estate has historically outperformed the stock market, and This platform allows individuals to invest in commercial real estate with as little as $5,000, offering a target yield of 12% with a 1% yield bonus today!

“A stock doesn’t make you money until you sell it,” Orman says. Having unrealistic expectations about what the stock market will be worth at its peak can cloud your judgment and lead you to make decisions based on fear rather than rational decisions.

The second mistake Orman points out: not Dollar Cost AveragingThis is an investment strategy that involves investing a fixed amount at regular intervals, regardless of the stock price. According to Orman, many investors make the mistake of investing all their money at once and missing out on opportunities to buy stocks at a lower price.

Trending: This Startup’s Stem Cell Research Aims to Reduce Reliance on Animal Testing — There’s a 55% increase in sales since the beginning of the year and the cost is just $3 per share for early investors.

To illustrate the benefits of dollar-cost averaging, Orman presents a hypothetical scenario involving two investors. One invests a lump sum of $12,000 in a stock at $10 per share, buying 1,200 shares. The other spreads the $12,000 over a year, buying more shares as the price drops. At the end of the year, the second investor is left with more shares and a profit, while the first investor barely breaks even. This strategy helps mitigate the impact of market volatility and allows investors to take advantage of lower prices.

The story continues

Dollar-cost averaging (DCA) is a common strategy recommended by many financial advisors. Morgan Stanley experts generally support and recommend a DCA strategy, but they advocate lump-sum investing when an investor has a large amount of capital to spend at one time.

Trending: Meet the AI-Powered Startup Turning Traders into Influencers and Achieving 12% Month-on-Month Growth – invest in it for just 10 cents a share.

According to a study by the Financial Planning Association and Vanguard, investors who use dollar-cost averaging typically see…