• Fees (or Costs): High-cost investments erode long-term returns. For example, frequent buying and selling generates transaction fees, as well as potential stamp duties, all of which reduce the final investment yield. Therefore, controlling unnecessary trading frequency and choosing low-cost investment tools (such as index funds) is crucial for improving long-term investment returns.

  • Emotion (or Sentiment): Investors’ emotions are often influenced by market fluctuations. For instance, they tend to be overly optimistic when the market is booming, and overly pessimistic when the market is sluggish. These emotional decisions often lead investors to buy or sell stocks at the wrong time. For example, selling during a market panic may result in losses, while chasing gains when the market is overheated may expose them to the risk of a pullback. Therefore, remaining calm and adhering to a long-term investment plan and value investing principles is extremely important.