Investing Pitfalls

Arigato, dear investor,

Today, I want to share something close to my heart—a personal story that I’m sure many of you will relate to on your own investing journey.

When I first started investing, I thought I had it all figured out. I researched, studied stocks, and set what I thought were solid goals. But here’s the truth: I made mistakes, and I lost money. Looking back, I realize how easily I fell into some classic psychological pitfalls—decisions influenced by tendencies I wasn’t even aware of at the time.

I bought stocks just because they were “popular” (that crowd-following tendency!). I held onto losing stocks because I couldn’t bear the thought of accepting a loss. I even went overboard with confidence, thinking I could outsmart the market. Each of these decisions, driven by subconscious biases, led me further away from my goals instead of closer. 😢 

The turning point came when I discovered Charlie Munger’s investment psychology. His approach helped me see these tendencies for what they are—common traps that almost every investor falls into at some point. By recognizing these biases, I could start to make more grounded, thoughtful decisions, moving toward profitability with far less stress.

That’s why I wrote my latest article, Charlie Munger’s Investment Psychology – Understanding the Psychological Biases in Investing Decisions (Part 1). This piece explores the first 12 psychological biases Munger highlights, with detailed explanations and practical tips on how to avoid each one.

These insights aren’t just theory—they’re tools that can help you build a stronger, more profitable investing mindset. By learning to recognize and counteract these tendencies, you can avoid the mistakes that many investors, including myself, have made.

Investing is a journey, and awareness is your best guide. I hope this article empowers you to take another step toward your financial goals with confidence and clarity.

A quick reminder: I’ll be hosting our US Election Prediction Market Update tonight at 8:30 pm! With the current uncertainty in the market, this session will provide timely insights to help you navigate these all-time-high volatility levels.

Please note, only 100 people can join live due to Zoom constraints, so be sure to turn up early to secure your spot!

I hope you find this newsletter useful!

If no one has ever told you yet, I just want to tell you that you are an amazing investor who is capable of creating abundant wealth for yourself and your loved ones! Regardless of what setbacks you’ve faced before, they will make you stronger and wiser.

So keep going on your investing journey! Let’s improve and keep learning, so we can create greater wealth and happiness together! 😃 

Arigato!

Chloe
Arigato Investor