Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 78% of retail investor accounts lose money when spread betting and/or trading CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money

78% of retail investor accounts lose money when spread betting and/or trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

Learning from your mistakes with Joachim Klement
  • Tricks

OPTO Sessions

Learning from your mistakes with Joachim Klement

According to Joachim Klement, investment strategist at Liberum, making mistakes is a key part of building out a bulletproof investment strategy. In a career spanning 20 years – which include roles such as managing director at Credit Suisse, CIO at Wellershoff & Partners and head of strategic research at UBS – Klement has learnt to love mistakes.

In his latest book, he explores “a very subjective selection of the seven biggest mistakes I have made in my career as an investors”.

But these mistakes aren’t used to Klement – on the contrary, he believes this list features some of the most common mistakes that a great number of investors are making.

One of the most common, he suggests, is investors looking at their portfolios too much.

Klement recalled the market crash in March. “We all get worried in these situations — I am no different than anybody else. The temptation is to look at my portfolio and see what it’s done. Obviously, if you do that and see it’s down 10% or 20%, or 25% then the temptation is to sell something.”

But this isn't necessarily the right way to respond, Klement explains. “You typically [end up selling] at a really bad time, simply because you looked at your portfolio constantly.” This, he says, leads people to miss out on what might happen next, when markets rebounded with a vengeance. 

“As a result, [these investors] compounded their losses by just basically looking at [their portfolio] too often,” he says. “This is something I’ve been guilty of in the past and that I’ve seen a lot of people doing in this crisis.”


To hear more of the common mistakes that investors make, and how they can spot these patterns, listen to the full podcast, here.


Or for more ways to listen:


Klement’s book, Seven Mistakes Every Investor Makes (and How to Avoid Them), is available via the Harriman House bookshop. Opto subscribers can save 25% on their orders and get free postage and packaging by quoting promo code Opto25. This offer ends December 2021.

Listen to the full interview and explore our past episodes on Opto Sessions.

Disclaimer Past performance is not a reliable indicator of future results.

CMC Markets is an execution-only service provider. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.

The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although we are not specifically prevented from dealing before providing this material, we do not seek to take advantage of the material prior to its dissemination.

CMC Markets does not endorse or offer opinion on the trading strategies used by the author. Their trading strategies do not guarantee any return and CMC Markets shall not be held responsible for any loss that you may incur, either directly or indirectly, arising from any investment based on any information contained herein.

*Tax treatment depends on individual circumstances and can change or may differ in a jurisdiction other than the UK.

Continue reading for FREE

  • Includes free newsletter updates, unsubscribe anytime. Privacy policy

Latest articles