Top 5 investor mistakes

We talk a lot about investor behavior at Azzad. Unlike the ups and downs of markets, it’s one of the few variables investors can control. Successful investing is hard, but it doesn’t require genius. Often, success simply means identifying your own psychological weaknesses and changing some behaviors in response. Azzad’s investment advisors have identified five common mistakes they’ve seen over the years. We hope you can use them to improve how you approach the markets. Mistake 1: Selective Memory Few of us want to remember a painful event or experience in the past, particularly one that was of our own doing. In terms of investments, we certainly don’t want to remember stock calls that we missed, and especially not ones that proved to be mistakes that ended in losses. The more confident we are, the more such memories threaten our self-image. How can we be such good investors if we made those mistakes in the past? Instead of remembering the past accurately, we will remember it selectively so that it suits our needs and preserves our self-image. “If we see ourselves as skilled traders, we often adjust our memories of the poor investment choices we have made,” says Azzad CEO