Investing can be exciting. It’s a way to build wealth, secure your future, and make your money work for you. But if you’re just starting, there’s one big mistake that can ruin your journey before it even begins.
Kamal Lidder a respected wealth advisor, warns that the most dangerous mistake new investors make is chasing quick profits without understanding the risks.
In this post, we’ll explore what this mistake looks like, why it happens, and how to avoid it.
The Temptation of Fast Money
Many new investors jump into the market hoping to make fast money. They see others on social media showing off big wins in stocks or crypto and think they can do the same. This often leads to:
· Following hype instead of facts
· Buying risky assets with no research
· Making decisions based on fear or greed
· Trying to time the market
Kamal Lidder says this kind of behavior isn’t investing—it’s gambling. And it rarely ends well.
Why Chasing Quick Profits Is So Dangerous
Let’s break down why this mistake causes so much trouble.
1. Emotional Investing
When you're driven by hype, you react emotionally. You buy when prices are high (out of FOMO) and sell when they fall (out of panic). This leads to consistent losses.
2. No Investment Plan
New investors often don’t have a plan. They invest randomly, without goals or strategy. Without direction, it’s easy to get lost or make poor choices.
3. Ignoring Risk
Kamal Lidder highlights that beginners often put too much money into one asset. They don't diversify. This means if that investment fails, they lose a lot—or everything.
Kamal Lidder’s Tips for Smarter Investing
So, how can you avoid these mistakes and invest wisely from the start? Kamal Lidder recommends a simple, safe approach.
1. Learn Before You Invest
· Start by understanding the basics of investing:
· What are stocks, ETFs, and bonds?
· How does compound interest work?
· What’s your risk tolerance?
The more you know, the better decisions you’ll make.
2. Set Clear Goals
Ask yourself:
· Why am I investing? (Retirement, home, education?)
· How long can I invest this money?
· What level of risk am I okay with?
Having clear answers helps build a strong investment plan.
3. Think Long Term
Most wealthy investors didn’t get rich overnight. They built wealth slowly over time. Investing in low-cost index funds or ETFs regularly, and holding them for years, is a proven path to success.
4. Ignore the Noise
Social media can mislead you. Just because something is trending doesn’t mean it’s a good investment. Stick to real research and trusted sources.
A Simple Plan to Get Started
Here’s a basic strategy Kamal Lidder recommends for beginners:
· Build an emergency fund (3–6 months of expenses)
· Pay off high-interest debt
· Start with diversified index funds or ETFs
· Invest a fixed amount monthly (dollar-cost averaging)
· Revisit your plan once or twice a year
This method keeps you steady, avoids risky moves, and builds wealth slowly but surely.
Final Thoughts
The biggest mistake new investors make, according to Kamal Lidder, is chasing fast profits without understanding the risks. It’s a trap that can lead to stress, losses, and even giving up on investing altogether.
But you can avoid it. Learn the basics, make a plan, think long-term, and stay calm. Investing isn’t about getting rich fast—it’s about growing your money wisely over time.