Fads and Fashions
"Following the crowd" is something that we have all been guilty of. But new investors are more likely to "follow the crowd" and fall in love with the latest fad. This is a great risk, and a dangerous one. Newer investors tend to be particularly attracted to fads and fashions in investing. Remember the internet bubble back in the 90s? So many people lost money buying in at the end of the cycle. Of course, those who bought in early made great profits, but these investors often bought in on fundamentals, not hype....