Here's a little secret:
Even well-meaning, smart investors can make costly mistakes.
Do you know why?
It has to do with personalities and emotional extremes.
You might think that investing is all about numbers and analysis, but you'd be underestimating the impact your personality has on how you spend, save, invest, and borrow.
The thing is, everyone is different and everyone is prone to making different mistakes, depending on their personality.
We've created a handy infographic that illustrates some of these extremes and how they can cost you as an investor.
Take a look below.
1 of 8
2 of 8
Chasing "Hot" Stock Tips
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Taking Too Little Risk
Taking Too Much Risk
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Dismissing the Data
Believing the Hype
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Paying Too Much in Fees
Assuming All Fees are Bad
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Trusting It All to a Human
Trusting It All to a Robot
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Underestimating Time Horizon
Overestimating Time Horizon
Investing Too Little
Investing Too Much
What can you do to help avoid these investing extremes?
Understanding yourself is the first step toward better investing and avoiding dangerous investing extremes.
- Do you act on your friends' stock tips?
- Do you worry about taking risks with your long-term savings?
- Do you worry about what's in the headlines each day?
Each of these traits helps define your investing personality.
We made a short quiz that identifies some of the most common traits in investing and highlighted areas of potential concern.
Download the What's Your Investing Personality? Quiz
It's just 7 questions and can help you take the first steps toward a stronger financial future.