9 Popular Investing Tips That Are Actually Hurting Your Portfolio

2. Overreliance on Past Performance

Investors often look to past performance as an indicator of future success, but this can be misleading. Markets are inherently unpredictable, and past trends do not guarantee future results. This reliance on historical data can lead to overconfidence and poor decision-making. While past performance can provide context, it should not be the sole factor in investment decisions. A comprehensive analysis that includes current market conditions, economic indicators, and company fundamentals is essential for making informed choices that align with future growth potential.