The Number 1 Investing Mistake Young Investors Are Making Today

Young investors: I’ve been there; I’ve gained money and lost it. I’ve learned that identifying this one mistake could be the key to your success.

| More on:
worry concern

Image source: Getty Images

There have been a lot of changes in the last few years when it comes to investing. The pandemic was a huge influence on this, especially for young investors. Internet-savvy Canadians were able to start making money from home while they also made money from work, getting into growth stocks and seeing shares soar.

The problem? They’ve now bottomed out. But the investing part isn’t the mistake here. Far from it! However, there is one enormous, huge, glaringly obvious problem that young investors continue to make over and over again.

Patience is a virtue

Look, if there is anyone who is impatient in this world, it’s me. If there’s a project I want to get started, you can bet I’ll start the day thinking of it. This has led to quite a number of half-completed projects currently sitting in my garage. Don’t judge.

However, when it comes to investing I’ve learned the hard way that patience is a virtue. I got into investing seriously after I had my first child. Having this little girl and wanting to secure her future was a major motivator. So, you know what I started with? Day trading.

Do not recommend.

Talk about impatient. Day trading involves buying a stock in the morning, for example, tracking it through the day until it reaches some sort of goal you’ve created and selling it. However, this also leads to losses. Big ones. This is why a change had to come.

Enter the Motley Fool

I know I currently work for the company as a writer, but there’s a reason for that. I started reading Motley Fool articles and learning. I learned a lot. Mainly that patience was the ideal way that leads to success. The longer you invest, and the more consistent you are towards your goals, the easier it is to achieve them.

So, when I started working for the Motley Fool, it was because I had gained knowledge by reading the site, along with conducting my own thorough research. It’s now led to not just a successful career in the finance journalism industry but also a portfolio that’s diversified and strong.

But if I can sum up my advice for investors, it’s to get in on strong, blue-chip companies, create that diversified portfolio, and then leave it alone. And another point? Create it with the help of a financial advisor. They’ll help not only identify where you can invest but help you calculate what you’ll need in returns to reach your own financial goals.

Foolish takeaway

Overall, I’m very glad so many young investors invested during the pandemic. It can take growth and loss to really cause investors to buckle down and learn about why long-term investing is the key to success.

But one final takeaway here. If you’re a new investor wanting in on a strong long-term investment, look to blue-chip companies. One strong option to consider that’s an easy choice for stable growth WSP Global (TSX:WSP). This asset manager has risen solidly over the last five years, even amidst the fall out from the pandemic and ongoing market turbulence.

Shares are up 17% in the last year, and it even offers a nice little dividend yield of 0.82%. Over the last decade, however, it’s grown 497%! That’s huge returns for your patience that could easily come again. So, remember, stay patient, and if you get antsy, just call up your financial advisor. They’ll talk you down from any investing edge.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool recommends WSP Global. The Motley Fool has a disclosure policy.

More on Stocks for Beginners

up arrow on wooden blocks
Stocks for Beginners

1 Under-the-Radar Canadian Stock That Could Soar From Trump’s Tariffs

Not all Canadian stocks are at risk from Trump's tariffs, and this one could be a winner.

Read more »

voice-recognition-talking-to-a-smartphone
Dividend Stocks

1 Magnificent Canadian Dividend Stock Down 40 Percent to Buy and Hold Forever

This magnificent Canadian dividend stock trades at a huge discount, offers stellar growth, and pays one of the best yields…

Read more »

Women's fashion boutique Aritzia is a top stock to buy in September 2022.
Stocks for Beginners

Got $5,000? Buy This Canadian Stock Before Trump’s Tariffs Take Effect

Canadians still have about a month before tariffs hit, so how can you protect yourself in the meantime?

Read more »

Concept of multiple streams of income
Top TSX Stocks

The Best Stocks to Invest $1,000 in Right Now

Here are some of the best stocks that every investor should own today to generate massive income and strong growth…

Read more »

The TFSA is a powerful savings vehicle for Canadians who are saving for retirement.
Dividend Stocks

Trump’s Tariffs Could Hurt Your TFSA – But These 2 Stocks Will Keep it Safe

Worried about tariffs coming down? Then consider these two stocks to keep your portfolio safe.

Read more »

TFSA (Tax free savings account) acronym on wooden cubes on the background of stacks of coins
Stocks for Beginners

The Best Canadian Stocks to Buy and Hold Forever in a TFSA

Are you wondering what types of investments to hold in a TFSA? Take a look at these types of companies…

Read more »

Map of Canada showing connectivity
Dividend Stocks

Trump’s Tariffs: 1 Canadian Stock to Dump and 1 to Buy Immediately

As Trump threatens tariffs on Canada, these are two top stocks to watch.

Read more »

monthly desk calendar
Dividend Stocks

Top Canadian Stocks to Buy for Monthly Income

Looking for some stocks to buy for monthly income? Here's a pair of great stocks that can provide both income…

Read more »