Most investing mistakes do not begin with a “bad stock pick”.
They begin much earlier, with hesitation, confusion, or a misunderstanding of how investing actually works.
That is why I think beginner investors in Australia often focus on the wrong things.
Beginner investors worry about whether they are picking the perfect ETF or which broker to go with. They stress over whether the market is about to crash. They spend weeks comparing tiny fee differences. Meanwhile, they ignore the basics that actually matter.
If you want to become a better investor, avoid these three mistakes.
Mistake 1: Waiting until you feel ready
This is the biggest mistake of all.
Repeated studies and data shows that people think they need more money, more certainty, more knowledge or better timing before they begin. So they wait. And while they are waiting, inflation and tax keeps eating their savings and working against them – your cash keeps losing its purchasing power.
The truth is, you will probably never feel fully ready to invest. There will always be something to worry about. Stock prices will look expensive. Headlines will be negative. Someone will tell you a crash is coming.
That is normal. In ~15 years, I’ve always had that feeling.
If you wait for complete confidence, you will never start.
I have always believed investing is an apprenticeship, not a degree. You do not master it in theory and then step onto the field. You get better by training and doing the reps. You invest a little, you watch how your investments behave, you learn how you react, and you improve from there.
That is one reason starting with small amounts is so powerful. It takes away much of the fear. It gives you room to learn. And it helps you develop the most important habit in investing: consistency.
Mistake 2: Not understanding the platform, broker or holding structure
A surprising number of investors open an account without really knowing what sits underneath it.
They know the app looks good or promises some type of fancy ‘trading tool’. They know the interface is easy. They know someone on social media or their dad’s mate’s friend recommended it.
But they do not know whether they are investing through a HIN-based structure or a custodial model. They do not know what protections exist. And they do not know which licence sits behind the platform.
That is a problem.
Why?
Because as your balance grows, you won’t feel confident if you don’t even know ‘how’ or ‘where’ your money is stored. It’s like having a bank without knowing it’s actually a bank.
In Australia, the first step is not choosing the cheapest broker.
It is understanding the structure you are using and deciding whether it suits your needs. If you are buying shares or ETFs, you should know who is holding the asset, how ownership is recorded, what fees apply, and how easy it is to transfer or manage your holdings down the track.
This is not about being paranoid. It is about being switched on and confident.
A good investor does not just ‘buy stuff’. A good investor understands the system they are operating in. That is part of being responsible with your money.
Mistake 3: Thinking good investing should feel comfortable
Shocker: it never is.
This is where a lot of beginners, intermediates and even advanced investors come unstuck.
They assume that if they have chosen good investments, the process should feel calm, smooth and reassuring. But investing does not work like that.
Even sensible, diversified portfolios can go backwards for a period of time.
And when that happens, people start questioning everything. They wonder if they chose the wrong ETF. They think they should sell. They assume discomfort means danger.
Usually, it doesn’t.
I like to say, “the stock market climbs a wall of worry”. Because it has always been true.
There are always reasons to be nervous: inflation, war, politics, recessions, interest rates, some new technology, valuations, regulation. Pick any year and you will find a reason not to invest.
But the long-term return from shares exists precisely because markets are uncertain in the short term.
If there were no volatility / randomness, no bad years and no emotional discomfort, there would be less reward for staying invested.
This is why diversification matters so much, especially for beginners. A broad ETF or diversified portfolio is not designed to eliminate the randomness. It is designed to make it more survivable. It gives you a better chance of staying the course when markets become unpleasant because you are diversified and you don’t feel extra-exposed.
And that, in the end, is one of the most underrated skills in investing: staying invested.
Final thought
The biggest edge most investors can build is not intelligence. It is behaviour. EQ not IQ.
Warren Buffett isn’t the world’s greatest-ever investor because he got super high returns (Jim Simons did that!). It’s because he got very good returns, for an ultra-long period of time (50+ years).
You do not need to know everything. You do not need to predict the next crash. And you do not need to find the perfect investment straight away.
You do need to start. You do need to understand the basics of where your money is held. And you do need to accept that some discomfort comes with investing.
If you can avoid these three mistakes, I feel like you will already be ahead of 75% of people who spend years thinking about investing but never really begin.
The goal is not to be fearless. The goal is to be prepared, practical and patient.
That is how wealth gets built in the stock market.
Owen Raszkiewicz is the founder of Rask. This article contains general financial information only, and is issued by The Rask Group Pty Ltd, which acts under AFSL 563 907. Don’t act on the information until you have considered your own needs, goals and objectives, or spoken with a financial planner who can do that for you. Find The Rask Group’s financial services guide (FSG) on rask.com.au.
