I asked Chatgpt about the worst mistake made by investors – here is what he said

If you want a snapshot of what looks like investing in stock marketCheck out how things are progressing so far in 2025. The S&P 500 has risen 13 % for this year, recently reached the highest level-just a few months later of sharp sales that warn many experts from the next bear market.

The lesson is that you can never know how the stock market interacts in the short term, but you can usually rely on it to continue to move in the long run. So why are many investors still losing money?

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The brief answer is that they continue to make the same mistakes over and over again. Gobankingraates Chatgpt asked what is the biggest mistake, Here is what he said.

According to ChatGPT, the worst mistake made by investors is to let feelings lead their decisions – especially fear and greed. This answer is in line with what many financial experts say.

Here is how ChatGPT collapsed two of the most harmful decisions Emotion -based investment:

• Fear and selling panic: While slowing the market, investors often feel panic and sell at the bottom, which means a lot of lock in losses. They also miss the inevitable recovery if fear keeps them out of the market for a long time.

• Granding and hunting noise: Hustle hot stocks or trends without understanding the company’s basics to buy and sell a high way – another confirmed method for losing money. For example, Chatgpt was martyred with Meme stocks, encryption and speculative stocks Technical stocks With no profits.

Payment: How to start investing with less than $ 1,000

To keep your passion Investment decisionsChatGPT recommended adopting a strategy that helps you avoid disposing of recklessly when the stock market swings back and forth.

Here are some steps that you can take:

1. Set clear goals. Before investing any money, first select the reason for your investment (for example, retirement, home front batch, children’s education). After that, select the time horizon when you need money, then your measuring Risk So you will have an idea of ​​the amount of volatility you can suffer from.

2. Create a bases -based plan. This plan must include required Asset customization In terms of stocks, bonds and other investments. It should also include the amount of money you want to put in different economic sectors, geographically and asset lessons. Finally, decided the number of times you want to balance your wallet, and how you plan to work during the bull and bear markets.

3. Use “discipline automation” tools. Another good idea is to decide when you want to make automatic contributions to your investment accounts. To get a simple and balanced portfolio, consider the targeted money or boxes circulating in the exchange. Regardless of the tools you use, you are committed not to check your wallet daily.