Markets are setting new records, and the overall sentiment feels both exciting and unsettling to many investors.
Bold moves are tempting, whether it is buying into the hottest stocks or selling everything in fear of a clash.
Yet in times of uncertainty, it’s often the basics that matter most.
Many investors make simple, avoidable mistakes that will cost them time and time again.
Follow as we look at five investing mistakes you need to avoid in today’s market, and the smarter strategies to use instead.
Mistake #1: Trying to Time the Market
Everyone wishes they had a crystal ball for investing — one that tells you when to buy because the prices will go no lower, and when to sell before an imminent crash.
Realistically, however, timing the market perfectly every time is impossible even for the most experienced investors.
A good example would be DBS Group Holdings (SGX: D05), which hit S$46.97 per share in late March 2025 before slumping to a 52-week low of S$36.30 in early April 2025, and only rebounded back to S$46.80 by the end of July 2025.
With such substantial price movements occurring sometimes within weeks, it is easy to miss the “right” timing.
The Smart Approach:
Instead of focusing on trying to time the market, focus on time in the market.
Dollar-Cost Averaging (DCA) is an investment technique which involves buying a stock at specific price intervals, no matter the cost, in order to mitigate the effects of volatility.
DCA eliminates the guesswork in stalking an asset.
The time, patience, and discipline brought over the years are the realtor for long-term investments.
Mistake #2: Ignoring Diversification
There are many opportunities in the stock market, ranging from technology stocks, or the growing property market.
However, over-reliance on a single stock or sector can expose your portfolio to unnecessary volatility.
For example, if you only concentrate on REITs, you will miss out on gems such as Hong Leong Asia Ltd. (SGX: H22.SI), whose difference between its 52-week high at S$2.64 and 52-week low at S$0.79 is a whopping 234%.
The Smart Approach:
Diversification is the key to risk management.
Every portfolio should have a stable mix of different assets such as blue-chip stocks, growth stocks, as well as REITs, foreign stocks, and ETFs.
Although having a diverse portfolio does not entirely protect investors from losing money, it does hedge against significant losses if it’s spread out well enough.
Mistake #3: Letting Emotions Drive Decisions
Emotional investing is often what leads to investors losing money.
Panic selling locks in losses, and chasing after expensive stocks exposes you to steep drops if the business does not have what it takes to sustain its hype.
Every investor feels greed and fear, but it is nearly impossible to build wealth for the long term if these emotions take over.
The Smart Approach:
It is only wise to follow a well-thought-out plan which adheres to the long-term, focusing on business fundamentals and not its fluctuating price.
Setting goals, understanding your investment timeframe, and being aware of your risk tolerance are crucial.
Investors who are patient and hold through downturns are the ones who see and reap the fruits of success.
This is illustrated through the United Overseas Bank Limited (SGX: U11.SI) performance during COVID-19.
If investors had panicked and sold during its low of S$17.90 in March 2020, they would have missed the bank’s strong recovery, which rose to a 52-week high of S$39.20 in Feb 2025.
Mistake #4: Overlooking Dividends and Cash Flow
Seeking capital gains is fine.
However, dividends help to earn a steady income and add additional funds to fall back on in dire times.
Companies that have been around for a while and have a strong footing in the industry will not stop paying dividends even during turbulent times, and that is highly reassuring for investors.
The Smart Approach:
Look beyond share price appreciation and add dividend-paying stocks to your portfolio.
While these companies might not deliver explosive growth, they can provide reliable returns that continue to reward investors even during uncertain market conditions.
Examples include DBS Group, Apple Inc. (NASDAQ: AAPL), and PropNex Limited (SGX: OYY), which continued to pay dividends during the pandemic.
Alternatively, check out these three Singapore stocks that have just doubled their dividend payout, the five US growth stocks that pay rising dividends, and the four companies that have hiked their dividend payouts by double-digit percentages.
Mistake #5: Not Reviewing Your Portfolio Regularly
Investors often “buy and forget”, or neglect rebalancing, allowing their portfolios to drift far from their intended targets..
While long-term strategies are important, markets shift over time, exposing you to more risk than you may have intended.
The asset composition you had five years ago might now be misaligned with your current goals, life stage, and even risk tolerance.
You might want to trim gains from outperformers like NVIDIA Corporation (NASDAQ: NVDA) and redeploy into undervalued sectors, or invest more in blue-chip stocks with solid dividends when you want less volatility in preparation for retirement.
The Smart Approach:
Review your portfolio at least once a year and check if your allocations still match your investment objectives and risk tolerance.
Don’t be afraid to rebalance your portfolio.
Certain sectors or stocks that might not have suited you a few years ago might just be what you need now.
Get Smart: Stay Disciplined in Any Market
It is easy to get distracted by headlines of the markets’ record highs or doom-and-gloom lows.
But remember, wealth is rarely built by reacting to every market headline or abandoning time-tested fundamentals when emotions take hold.
Mistakes are part of every investor’s journey.
Avoiding these five mistakes will not guarantee instant riches, but it will keep you from sabotaging your own success.
Markets will rise and fall, but if you avoid these common traps and stick to sound principles, your portfolio will keep working for you through every cycle.
Looking to start investing? Our beginner’s guide will show you how to make the best buying decision and make fewer mistakes. Click here to download for free now.
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Disclosure: Wenting owns shares in Apple.
