7 Deadly Sins Of Investing And How To Avoid Them

Here, we discuss the seven deadly sins of investing,  how they may impact our stock performance through destructive mistakes, and how we can avoid them.

What Is Investing? Investing is a way to potentially grow the amount of money you have. Investing is the best path to achieve wealth but it’s not a straight road.

Start investing as early as you can so you can earn money on top of the money you already earned, called compounding returns.

The seven deadly sins passed down from the Catholic Church of the Middle Ages may cause investors to perform poorly as modern examples for each deadly sin.

1. Lust

As the first deadly sin, lust is a strong craving or intense longing such as sexual desire. It can also mean hunger for money.

2. Gluttony

Gluttony is the overconsumption of eating and drinking. We have all been there, gorging ourselves over an excellent meal, and feel our regrets afterward.

3. Greed

Greed is not good, but it is very prevalent in the world of investing.  It breeds greed and the need to make more than the person next to you.

4. Sloth

As a deadly sin, sloth translates to an absence of interest or not exerting oneself physically or mentally.

5. Wrath

We become angry at bad decisions for keeping stocks too long or selling them too fast as many jumped to do as the stocks sold off in March in the shortest bear market in memory.

6. Envy

 Have you ever felt envious? Of course, you have. Envy is a feeling of resentful longing often brought on by someone else’s possessions, better standing, or luck.

7. Pride

 Pride or extreme pride is hubris, a Greek cousin to pride. Hubris means self-confidence, arrogance, and corrupt selfishness.

When investing, you may have run into the seven deadly sins that can impact your performance. Counter each sin, often wrapped in emotion or biases, with purposeful investing to avoid common mistakes.

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