The 10 big investment mistakes - Spend & Save , Money - The Independent

The 10 big investment mistakes - Spend & Save , Money - The Independent

Any savvy investor knows the basic principle of investment: buy low, sell high. However, investors often ignore this rule, as they get swept up in prevailing market sentiment.

When markets have stormed ahead, sentiment is positive and people are more likely to invest as they don't want to miss out on further gains. Conversely, when markets have performed poorly, sentiment is negative and people are more likely to head for the exit due to fear of clocking up further losses.

Patrick Connolly, at AWD Chase de Vere, the independent financial adviser, says: "People make too many irrational investment decisions, which are based on either greed or fear. The result is that many people invest at the top of the market and withdraw their money at the bottom, having a thoroughly miserable experience of investing along the way."