How to Invest With Confidence (Without Losing Money!)🚨
Issue #08 of the Chidera Peters Dispatch
I remember when I first started investing—I was excited but also very nervous. I’d heard people talk about the stock market, but I didn’t really understand how it worked. Every time I thought about investing, I had a million questions: What’s an index fund? How do I choose stocks? What if I lose all my money? So, instead of diving in blindly, I spent time learning the basics and slowly building confidence.
Looking back, I made some classic beginner mistakes (which I’ll get into) 🤦🏽♀️, but one thing I know for sure? The fear fades once you take action. If you're about to start investing or have already started, here are common mistakes to avoid so you can invest with confidence.
Money Corner: Investing Mistakes To Avoid!
🚫 1. Investing in Something You Don’t Understand
I get it—everyone on TikTok is talking about “the next big stock” or some coin that’s about to take off. But here’s the truth: if you don’t understand how an investment works, you’re gambling, not investing.
✔ What to do instead: Take time to learn before putting in your money. Watch YouTube videos, read articles, and stick to well-established investment options like index funds and ETFs.
💰 2. Using Money You’ll Need Soon
Investing is for long-term growth, not quick returns. If you’ll need the money in the next year or two (for rent, emergencies, or a big purchase), keep it in a savings account instead.
✔ What to do instead: Only invest money you won’t need for at least 5 years, so you can ride out market ups and downs without stress 😮💨.
⚠ 3. Chasing Quick Gains (a.k.a. FOMO Investing)
I’ve been there—you see a stock skyrocketing, and you want in before you “miss out.” But by the time you hear about it, it’s usually too late. Hype stocks crash just as fast as they rise.
✔ What to do instead: Stick to solid, long-term investments that grow steadily over time instead of chasing quick wins.
💸 4. Ignoring Fees (They Add Up!)
A lot of investment platforms charge fees e.g. Annual Management (AUM) fees, and if you’re not paying attention, those small costs can eat into your profits.
✔ What to do instead: Choose low-fee investment platforms and always check what you’re being charged before investing. For example, a platform charging 0.1% in annual fees (AUM) is generally considered low, while 1% or more can eat into your profits over time. Lower fees mean you keep more of your money, allowing it to grow faster over time 🌱.
🎯 5. Not Having a Strategy
Randomly throwing money into investments isn’t a plan 🙅🏽♀️. If you don’t have a clear strategy, you’ll panic sell when the market dips or invest inconsistently.
✔ What to do instead: Have a clear investing strategy by knowing:
✅ What you’re investing in – Are you focusing on stocks, index funds, ETFs, or a mix?
✅ Why you’re investing – Is it for early retirement, buying a home, or building generational wealth?
✅ Your time horizon – Are you investing for 5 years, 10 years, or 20+ years?
Having a plan makes it easier to stay consistent and avoid emotional investing decisions.
📉 6. Checking the Market Every Day
Beginners often obsess over stock prices, and when the stock market dips, fear kicks in and they sell at a loss. But remember, markets go up and down—short-term drops don’t matter in long-term investing.
✔ What to do instead: Invest and chill. Check your portfolio once a month or even once a quarter, NOT daily.
🔄 7. Not Automating Your Investments
One of the best decisions I made? Setting up direct debits for investing 🔐. Now, my investments happen automatically before I even see my salary—so I don’t forget or overthink it.
✔ What to do instead: Set up a monthly direct debit to your investment account. This removes the guesswork and helps you stay consistent.
🚀 Join My New WhatsApp Channel!
I’ve just launched a WhatsApp Channel (and in less than 72 hours, over 600 people have joined! 😳).
🚨 What to know about the WhatsApp channel:
✔ A one-way channel (not a group—so no endless “spammy” messages 🙃)
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New Video This Week 🎥
With inflation at 3% in the UK, saving in an account that earns less than this means your money is losing value 📉 —its purchasing power is shrinking. A high-interest savings account can help your money grow faster and protect more of your returns.
📌 In this week’s video, I break down the 5 best high-interest accounts you can use to earn money TAX-FREE + key factors to consider before choosing an account.
What’s Coming In Subsequent Emails
Here’s what’s dropping in the next few weeks:
📌 Index Funds vs. Stocks: Which One Should You Start With?
📌 How to spend money without guilt (my best budgeting method)
📌 How I Budget Now vs. When I First Moved to the UK
Stay tuned for these! 🚀
That’s it for this week!
Until next time, make sure your money is growing—don’t let your money be doing hard guy in a zero-interest account 🧎🏽♀️.
XOXO,
Chidera