It's sometimes OK to #buy a new gadget on a whim. But with #stocks, not so much.
Rather, it's important to #research each #stock you buy to make sure the #company behind it is not only financially sound, but also that it has decent #growth potential. If you jump on a stock without looking into it at all, you may end up regretting that#decision.
You're just following the hype
Meme stocks have been popular this year, but many of the companies behind them are rather #speculative, which could translate into a poor #investment for you. Rather than buy the stocks that everyone keeps talking about and the internet seems to be all over, aim to find solid companies with strong earnings and an established record of managing their #cash well.
You're acting on emotion instead of logic
If you're a big fan of a certain company's product, you may be inclined to buy its stock. #Investing in companies that have #business#models you understand is a good idea. But that's not the same thing as #buying a stock simply because you like or use a specific product.
You're focusing on price more than value
Many #investors are drawn to inexpensive stocks including penny stocks because they feel that, by virtue of that low price point, they're getting a bargain. But a cheap stock doesn't imply that you're getting a good deal. In fact, think about electronics you may like the idea of buying a $300 laptop instead of spending $1,200, but chances are that a $300 purchase won't last nearly as long or offer nearly as much value.