When I was growing up, my parents were fantastic conversationalists, and dinnertime discussions were particularly enlightening. Driving to school with my dad was a special experience because he’d educate me on a variety of topics, from historical differences between Protestants and Puritans during Elizabethan times to the intricacies of calculating standard deviation. These discussions spilled over into family dinner conversations about finances, giving my siblings and me a foundational understanding of finance and investing at an early age.

I couldn’t wait to open my brokerage account, and I did so as soon as I turned 18. For most people, turning 18 means stepping into adulthood and gaining the ability to sign legal documents. For me, it meant finally being able to invest my own money. However, my eagerness led to some significant mistakes during my first year as an investor. While I made more than four missteps, the ones listed here were the costliest. At least I didn’t fall into the trap of using a simulated trading account.

I WAS TOO EXCITED

Like many newly-turned-adults, I lacked patience. I was so eager to dive into investing that I placed my first buy order for Nike stock within two days of opening my brokerage account, after only reading a couple of financial articles. Unfortunately, that stock plummeted by more than 50% within nine months, a blow both financially and emotionally.

To all the new investors out there, don’t rush into investing. Educate yourself as much as possible beforehand. Had I read books on investing and studied successful investors like Warren Buffett, I could have avoided this painful financial mistake. Patience is essential for investment success.

A BAD BROKER EXPERIENCE

When full-time brokers were still common, I had one who was more interested in generating commissions than offering sound advice. He wasn’t a bad person, just doing his job. Shortly after I opened my account, he recommended a stock based on some research he had done, assuring me it was a “sure thing.” Naively, I followed his advice, only to be disappointed.

The lesson here is never to blindly trust your broker. Brokers have a conflict of interest—they want to make commissions, whereas you want to make profitable investments. This often leads them to push unnecessary buys and sells. Warren Buffett’s strategy of “being right and sitting tight” contrasts sharply with a broker’s approach. I soon switched to a self-service online brokerage with cheaper commissions and no brokers pestering me at odd hours.

OVERSPENDING ON INVESTMENT TOOLS

Despite growing up in a frugal household, my foray into investing was far from frugal. I spent thousands on investment DVDs, seminars, and trading models promising high returns. While I did find some value in newsletters from serious analysts that I still read today, most of my $4000 expenditure was wasted. Only about $300 was actually useful; the rest either didn’t work for me or was outright useless.

The takeaway here is to avoid high overhead costs when starting out. As a beginner, you’re still figuring out who you are as an investor and what strategies suit you best. Instead of spending thousands, start by reading free investment articles online.

RELYING ON GUT FEELINGS

Initially, I invested based on gut feelings rather than rigorous analysis. I would glance at financial reports and stock patterns, do some quick mental math, and make investment decisions. Not surprisingly, my first year wasn’t very profitable.

For serious investors, a systematic, step-by-step approach to making investment decisions is crucial. Relying on gut feelings or hunches is not a reliable strategy; my experience shows it leads to more losses than gains.