Investment mistakes can cost you money, so you should try to avoid them. Successful investing entails more than just picking the right stocks. Simple errors that could undo all of one’s previous hard work must also be avoided.

During the early 2020 stock market crash, many investors saw what impatience can lead to as they began liquidating their portfolios. Following the collapse, the markets quickly recovered and then broke previous highs, rewarding investors who had patience and planned well.

We discuss such common errors to avoid when investing in global stock markets.

1) Lack of Investmnt Goals

One of the most common mistakes while investing in international stock markets is a lack of proper investment goal. You need to articulate your investment objective and deploy the best tools to achieve these objectives.

2) Trying to Time the Market

Another common mistake in stock trading is trying to time the market. It’s challenging to time the market, and even seasoned investors often fail to do it right.

3) Asset Allocation is Equally Important

Several research studies show that asset allocation is the key to a successful investment portfolio. However, investors make a common mistake focusing on picking individual stocks instead of doing proper asset allocation.

4) Lack of Patience

Successful long term investing is 1% action and 99% patience. However, many investors lack that patience and end up continually tinkering with their portfolios.

5) Relying on Emotions

There are several biases at play when you make an investment decision. Relying on emotions in a volatile market is another common investment mistake.