Kent Financial Adviser Shares the Five Emotional Investment Mistakes Most People Make

Kent-based Independent Financial Adviser Louise Fitzgerald is helping local investors avoid costly mistakes by shedding light on five of the most common emotional pitfalls when it comes to managing money. In this straight-talking feature, Louise explains how our feelings – especially fear and greed – often lead to poor investment decisions, and what to do instead to protect your long-term goals.

Acting emotionally when markets rise or fall is surprisingly easy to do – even for experienced investors. Louise Fitzgerald, who supports individuals and families across Kent with long-term financial planning, sees the pattern regularly: “Fear makes people sell too soon. Greed makes people chase returns that are already gone. Both can do lasting damage to your financial future.”

Here are the five emotional mistakes Louise sees most often – and how to avoid them:

1. Panic Selling During a Crash
When markets fall suddenly, the instinct to sell and “cut your losses” can feel overwhelming. But panic selling usually locks in a loss and removes your chance to benefit from any rebound.
Example: During the COVID crash in March 2020, many investors sold out at the bottom and missed the dramatic recovery that followed just weeks later.
Takeaway: Stay invested and avoid reacting to short-term noise.

2. Jumping In After a Rally (FOMO)
When headlines boast about record-breaking returns, it’s tempting to jump in late, driven by the fear of missing out. But buying into hype often means buying high – just before a correction.
Example: In 2021, many investors rushed into tech stocks and cryptocurrency after explosive gains, only to see sharp drops.
Takeaway: Past performance is not a guarantee of future results. Make decisions based on your goals, not hype.

3. Trying to Time the Market
Many people wait for the “right” moment to invest – often sitting in cash for years. But missing the best days in the market can severely impact long-term returns.
Example: Investors who left the market in 2008 and didn’t return until 2013 missed major gains.
Takeaway: It’s not about timing the market, it’s about time in the market.

4. Overconfidence After a Winning Streak
Strong returns can lead to bold (and risky) decisions, like putting too much money into a single stock or sector.
Example: Investors who rode a wave of success sometimes ditch diversification, leaving them exposed when volatility returns.
Takeaway: Confidence is good – overconfidence is dangerous. Stay diversified.

5. Anchoring to Past Prices
This is when investors fixate on what they originally paid for something and refuse to sell until it “gets back to even.”
Example: An investor buys a stock at £50. It drops to £30. They won’t sell until it hits £50 again, even if better opportunities exist elsewhere.
Takeaway: Let go of emotional attachment and make forward-looking decisions.

Louise encourages investors to ask themselves:

• Am I reacting emotionally or logically?

• Do I have a long-term plan I trust?

• Am I holding on just to “break even”?

• Have I reviewed my portfolio recently with fresh eyes?

“We all want to make smart choices with our money – but the truth is, our emotions often get in the way,” said Louise Fitzgerald. “I work with clients to help them stay grounded, even when the market gets noisy. The goal is long-term confidence, not short-term reactions.”

Louise is currently offering free Investment Sanity Sessions – 30-minute phone or Zoom consultations designed to help people spot emotional decision-making, review their strategy, and get clear on their next steps. These are available to Kent residents throughout August and September, with limited slots each week.

Louise Fitzgerald leads the team at Sterling & Law Tunbridge Wells, a Kent-based independent advice firm helping individuals and families build long-term financial security through clear, compassionate, and strategic advice. Louise specialises in investment planning, retirement readiness, and financial wellbeing – all grounded in a human approach that cuts through the noise and focuses on what really matters.

Contact Details

Name: Louise Fitzgerald
Business Name: Sterling & Law Tunbridge Wells
Email: [email protected]
Phone: 07891 039 256
Website: www.sterlingandlaw.com/locations/financial-advice-tunbridge-wells
Instagram: www.instagram.com/louise.fitzgerald_ifa

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