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10 Investors Share What They Wish They Knew Early On (and It's Eye-Opening)

Keeping these lessons in mind can protect your money.

By Chris Adam

Edited by Chris Kissell

Updated Oct. 10, 2024

With a new year on the horizon, perhaps you plan to finally start investing. Or if you already invest, maybe 2025 is the year when you are going to set aside more time to focus on your portfolio.

As you move ahead in your investing journey, you will want to try to avoid some key errors.

In a series of Reddit posts, today's seasoned investors have acknowledged some rookie blunders they made in the past, and have written about what they learned from those mistakes.

Reading their insights might get you on the right investing path — and keep you there.

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It's better to start investing when you are young

Redditor babarock went straight to the point: "Biggest regret? That's easy. Not starting when I was 18."

The earlier you start to invest, the more time your money has to compound so you can get ahead financially.

Other Reddit users remarked that there is a learning curve with investing and the losses can be easier to manage when you start out at a younger age.

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Thinking short-term can be dangerous

Investing in stocks as a short-term way to make money can be counterproductive, or even financially dangerous.

Reddit user 78fj's biggest regret is selling good stocks: "Should have never sold any of my stocks. Buy and hold long-term only. Otherwise I should have stayed out of the stock market."

Investors who try to guess where the market is going frequently fail to find the success of those who buy great companies and sit on their stocks for a long period.

Others with a short-term mindset sell good stocks once they make a profit, and then face the agony of seeing the stock price soar higher.

Chasing the market can be painful

SirGasleak recalled selling stocks right before a market swoon in 2007. While that decision worked out well, the Reddit user's future guesses about the direction of the market were much less fruitful.

In fact, SirGasLeak says thinking short-term and chasing market performance "have cost me a lot of money over my investing career. A LOT."

In general, it is very difficult — and some would say impossible — to try to guess where the market is headed. Chasing market returns in this way often ends in disaster.

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Don't invest money you will need soon

Reddit user sultanofswaps urges you not to stress over investments, and offers some advice for how to avoid such worry: "Don't invest money you'll need soon."

Investing cash you may need relatively soon can be risky. The stock market can be a volatile place, particularly over short periods.

Instead, look to investing as part of a long-term strategy for your money.

Invest your bonuses

If you are serious about investing, bonuses can be great opportunities to build your portfolio — but not if you blow the cash on other things.

Reddit user McKnuckle_Brewery writes, "My biggest regret is not investing my bonuses and employer stock grants over the years. I treated most of that as extra money for indulgences."

Since you are probably not counting on a bonus as part of your regular income, it likely won't hurt your budget if you invest the money instead of spending it.

Learn to balance risk

Investors tend to think about risk a lot. SomeOneRandomOP's big takeaway is to learn to balance risk.

The Reddit user writes that although you won't always make the right call, "when you do great, when you don't, it won't wipe you out" if you have properly balanced risk.

Investors need to understand their risk tolerance. A financial advisor can help you better understand this crucial concept.

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Avoid falling in love with a company or stock

This may be a tough lesson to learn as an investor, particularly early on. Reddit user idontknowmuchanymore's big regret is "falling in love with a company/stock."

Just because you are a big fan of a certain store or company doesn't necessarily mean it's a good investment.

Perform regular check-ins

There can be great value in a long-term investment strategy like buying and holding. But, as Reddit user friendofoldman notes, investors still need to check in from time to time on their holdings.

The Redditor writes: "I tend to buy and hold. BUT, you still need to revisit these holdings as a company changes its strategy."

While you don't need to constantly monitor your portfolio and the individual companies within it, a regular check-in can be useful. Perhaps set a schedule of checking in every quarter, for example.

Stop buying into the hype

Hype is something many people experience throughout their lives. As kids, we all beg our folks for a toy that's been hyped up in the media or by our friends.

Even as an adult, it's easy to fall for such chatter. Redditor Riceisverynice's biggest regret is buying into hype — "and not cutting losses when necessary."

Just because everyone is talking about a company or stock doesn't necessarily mean it's a good choice for your portfolio.

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Educate yourself

Reddit user windycitysteals has some advice for new investors: "Invest in education — know your companies, read, watch and learn about your money."

Those who hope to build wealth can reap big dividends by taking the time to educate themselves about their investments. That is true even for those who work with a financial advisor.

Bottom line

As an investor, you can learn a great deal from others who have made mistakes that you should avoid.

For example, thinking short-term or trying to chase the market can be costly mistakes that make it much more difficult to manage your money. So, carefully read through the suggestions on this list so you will become a better investor in 2025 and beyond.

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