"Financial advisory statement from PecuniArs: Unhealthy investing practices that frequently lead to underperformance compared to the market"
In the world of investing, it's easy to fall into common behavioural pitfalls and poor strategies that can lead to underperformance. These "Deadly Sins of Investing" are mistakes that cause investors to deviate from a low-cost, diversified, long-term investment approach.
PecuniArs Gesellschaft für strategische Anlageberatung mbH, an independent, fee-based financial consulting company based in Berlin, founded by Klaus Porwoll in 1994, aims to help investors avoid these sins and make well-founded financial decisions.
One of the most common mistakes is overconfidence, where investors believe they can consistently outperform the market. However, even professional investors find this challenging. Every return in the capital market comes with a corresponding risk.
Greed can also lead investors astray, causing them to chase high returns that often come with high risk. It's essential to orient oneself to the normal returns available on the stock market in the long term.
Another sin is the belief that one can time the market correctly. While missing the very worst market days could theoretically boost returns, consistently timing entry and exit is extremely difficult and often results in missing good days as well, leading to overall underperformance.
Envy or FOMO (Fear of Missing Out) can also threaten investment success, as investors may be tempted to follow trends that are already profitable, often arriving too late.
Emotions such as fear and greed can cause investors to sell at the wrong times and miss out on potential gains. It is important for investors to make decisions based on rational analysis rather than emotions.
Frequent trading leads to high costs, which negatively impacts returns. Focusing on performance and ignoring costs in investment products can also negatively impact returns, potentially costing thousands of euros over a ten-year investment period.
PecuniArs ensures that its advisory is exclusively in the client's interest through remuneration solely on a fee basis. The company's goal is to accompany clients long-term and trustfully on their way to financial goals, free from conflicts of interest.
The company specializes in serving business owners, entrepreneurs, managers, freelancers, and self-employed individuals, and aims to create a cost-transparent and personal advisory basis for conscious, well-founded financial decisions.
In summary, avoiding the "Deadly Sins of Investing" involves disciplined, patient investing, minimizing trading and fees, maintaining diversification, and not succumbing to emotional impulses. Press inquiries should be directed to PecuniArs' press agency.
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