Free chapter · Chapter 15 of 17
Ten mistakes Lena almost made
Most beginners don't lose money because they picked the wrong ETF. They lose it through behaviour.
Looking back after a year, Lena counts the traps she nearly walked into. Some came from friends, some from social media, some from her own nerves.
Here are the ten most common mistakes and what to do instead.
- Waiting for the right moment
What Lena nearly did: “I'll start after the next dip.”
Do this instead: Start now; time in the market beats timing the market.
- Panic-selling in a crash
What Lena nearly did: Hovered over “sell” when her depot was down 25%.
Do this instead: Keep the plan running; crashes are sales (Chapter 14).
- Chasing last year's winner
What Lena nearly did: Almost bought an AI-theme ETF after a 60% year.
Do this instead: Stay with the broad world ETF; keep themes under 10%.
- Following finfluencers
What Lena nearly did: A video promised 20% a month with options.
Do this instead: EU rules make CFD providers disclose how many retail accounts lose money, typically most of them. If it sounds too good, it is.
- Paying too much
What Lena nearly did: The bank fund with a 5% front load.
Do this instead: Check TER and fees in euros (Chapter 8).
- Forgetting the Freistellungsauftrag
What Lena nearly did: Paid tax on her first dividends for no reason.
Do this instead: Set 1,000 € on day one (Chapter 12).
- Investing the emergency money
What Lena nearly did: Wanted to invest all 2,400 €.
Do this instead: Safety net first (Chapter 3).
- Checking the app every day
What Lena nearly did: Refreshed after every headline.
Do this instead: Check once a quarter; review once a year.
- Collecting overlapping ETFs
What Lena nearly did: MSCI World + S&P 500 + Nasdaq 100.
Do this instead: That's mostly the same US companies three times; one world ETF is enough.
- Stopping when life gets busy
What Lena nearly did: Nearly paused the plan during a move.
Do this instead: Lower the amount if needed, but never stop the habit.
In a nutshell: Your behaviour matters more than your fund choice. Automate, diversify, ignore the noise.
Quick check
- Why is owning MSCI World, S&P 500 and Nasdaq 100 ETFs together not real diversification?
- What should you do with your savings plan in a crash?
The other 16 chapters
This is one chapter of From Sparbuch to Sparplan, the friendly ETF guide in English for everyone living in Germany. The book follows Lena from her first 100 € to a running savings plan, with German and expat taxes explained line by line.
Coming soon on Kindle and Tolino.