Hi Lykkers, Let's be honest — the moment you hear someone talk about stocks and funds, it can sound both exciting and terrifying. Maybe your friend just made money on a tech stock.

Or maybe you read a headline that a fund outperformed the market. Now you're wondering: Should I start investing too?

If you're just starting out — good on you. Investing is one of the smartest long-term financial moves you can make. But the early days can be filled with confusion, fear, and unfortunately, avoidable mistakes. So today, let's talk about the top mistakes beginners make when investing in stocks and funds, and how you can steer clear of them.

1. Investing Without a Plan

This is hands down the biggest mistake.

Many beginners dive into the market because they heard about a hot stock or a top-performing fund. But investing without a clear goal — whether it's retirement, buying a house, or building wealth — is like driving without a destination.

Fix it: Set clear, realistic goals. Decide how much you want to invest, for how long, and what kind of risk you can tolerate.

2. Trying to Time the Market

"I'll wait until the market crashes, then I'll buy." Sound familiar?

Timing the market is nearly impossible — even for professional investors. Trying to jump in and out at the perfect moment usually leads to missed opportunities and panic selling.

Fix it: Focus on time in the market, not timing it. Consistent investing (like monthly contributions) beats guessing when prices will rise or fall.

"According to a 2023 analysis by Vanguard, investors who stay in the market for the long term outperform those who try to time it by an average of 2.5% per year. This shows that consistency — not prediction — is the real driver of investment success."

3. Putting All Eggs in One Basket

Buying only one or two stocks — especially based on hype — can be a risky game. If one company fails, your portfolio takes a big hit.

Fix it: Diversify. Mix individual stocks with mutual funds or ETFs that spread your investment across different sectors and regions.

4. Ignoring Fees and Charges

Many beginners overlook the impact of management fees, trading costs, and hidden fund expenses. Over time, high fees can eat into your returns.

Fix it: Always check the expense ratio of funds and compare brokerage fees. Even a 1% difference matters in the long run.

5. Investing Money You Can't Afford to Lose

Some beginners invest using emergency savings or money they might need in the short term. When markets dip, they panic and sell at a loss.

Fix it: Only invest disposable income — money you won't need for at least 3–5 years. Keep emergency savings separate in a safer account.

6. Following Hype and Headlines

Buying stocks based on trends, social media, or the latest news can lead to emotional and short-term decisions — not smart investing.

Fix it: Do your research. Follow fundamentals, not FOMO. Understand what the company or fund actually does and why it fits your strategy.

7. Checking Your Portfolio Every Day

It's tempting to refresh your app every hour, especially when markets are volatile. But constant checking can lead to emotional decisions and stress.

Fix it: Set it and mostly forget it. Check in monthly or quarterly instead of daily. Focus on the long-term trend, not daily swings.

Final Thoughts

Investing is a powerful tool — but only when used wisely. Every experienced investor has made a few early mistakes. The good news is, you don't have to repeat them.

By avoiding these common pitfalls, you'll build smarter habits, stay calm during market noise, and grow your wealth steadily over time. Start slow, keep learning, and remember: patience pays.

You've got this, Lykkers. Make your money work for you — the smart way.