What are the top mistakes people make when investing in stocks?

What are the top mistakes people make when investing in stocks?

The most common mistakes that people make when investing in stocks is not understanding why they're buying into that individual company and how it relates to their overall portfolio. We're talking about investing and not a speculative strategy, and that means we're going to have many securities in our portfolio, broadly diversified amongst countries and asset classes. As a result of that, this individual stock isn't going to matter or at least it shouldn't matter with regards to our portfolio. So when investing in stocks the top mistake people make is tending to over-consider their portfolio when buying stocks and here's where the big mistakes really happen, through all the hype, through the sales pitches, that we like this company, we shop there, it feels good to us, it's got to be a great company, whatever it might be that makes us want to own it, etcetera. But back to the issue of our overall portfolio - in a well diversified portfolio, individual securities do not matter.