Common Investor Mistakes
And How We Avoid Them
Mistake | Typical Impact | Our Approach |
|---|---|---|
Market Timing | Missing the 10 best days over 20 years can reduce returns by >40% (JP Morgan) | Stay invested through disciplined allocation |
Chasing Performance | Investors buy high, sell low — DALBAR: average investor lags S&P by 3.5% annually | Evidence-based, factor-focused approach |
Ignoring Taxes | Annual tax drag can reduce returns by 1–2% | ETF structure + proactive tax management |
Lack of Diversification | Concentration risk amplifies losses | Global exposure across asset classes and factors |
Emotional Investing | Selling in downturns locks in losses | Behavioral coaching + rules-based process |
Market Timing
Missing the 10 best days over 20 years can reduce returns by >40% (JP Morgan)
Stay invested through disciplined allocation
Chasing Performance
Investors buy high, sell low — DALBAR: average investor lags S&P by 3.5% annually
Stay invested through disciplined allocation
Ignoring Taxes
Annual tax drag can reduce returns by 1–2%
ETF structure + proactive tax management
Lack of Diversification
Concentration risk amplifies losses
Global exposure across asset classes and factors
Ignoring Taxes
Selling in downturns locks in losses
Behavioral coaching + rules-based process