Relying on common sense and market conventions are among the causes of a list of seven mistakes often made by investors, according to the investment house AMP Capital.
"In the upside-down world logic that applies to much of investing, there are ... mistakes investors often make which make it harder for them to reach their financial goals," Shane Oliver, head of investment strategy and chief economist at AMP Capital, said in a note.
Given how often rules of thumb are proven wrong by the markets, Oliver provided a list of the most common bad habits that he said investors should break.
Following the herd
In a classic case of safety in numbers, individuals feel assured investing in assets that everybody else likes. However, this course of action is doomed to failure, Oliver cautioned.
"When everyone is bullish and has bought into an asset with general euphoria about it, there is no one left to buy in the face of more positive supporting news but lots of people who can sell if the news turns sour," Oliver explained.