Introduction
Good process beats good luck.
Mistakes are usually less about intelligence and more about an unclear process. These four patterns are useful to notice.
Chasing performance
Recent returns can attract attention, but they do not tell you whether the same conditions will continue.
Ignoring concentration
A portfolio can look diversified while depending heavily on one theme, sector or outcome.
Investing money needed soon
A short goal and a volatile asset can be a poor match, even when the long-term story sounds compelling.
Skipping the review
A plan should change when your goals, cash flow or risk capacity changes. Review with a reason.
Conclusion
No process eliminates risk. It can, however, make your decisions more deliberate and easier to revisit.
Talk through your plan ↗