Everyone makes mistakes at the start of their investment journey. But in South Africa’s unique market, avoiding the most common errors can help protect your capital and improve your results.
1. Not Understanding What You’re Investing In
Too many beginners follow hype or social media trends without understanding the basics. Always know what a fund or stock does, how it earns revenue, and what risks it carries.
Solution: Read product fact sheets, watch explainer videos, and ask questions. Never invest blindly.
2. Trying to Time the Market
Trying to buy low and sell high rarely works for beginners. It’s easy to panic when prices fall and miss the rebound.
Solution: Use a long-term strategy. Invest consistently, and ignore short-term noise.
3. Ignoring Fees and Taxes
Management fees and tax on gains can quietly erode returns. Not using tax-free accounts or paying high platform charges is a common mistake.
Solution: Choose low-fee platforms and prioritise TFIA accounts for long-term investments.
Start simple, stay consistent, and keep learning—the best results come from steady, informed investing.