From 2002 to 2021, the average investor earned just 3.6% per year, while most markets across the globe earned much more. According to DALBAR’s 2022 Quantitative Analysis of Investor Behavior, cited in J.P. Morgan’s research, the gap isn’t due to the market—it’s investor behavior.

Here are the 5 biggest investor mistakes causing this gap:

1. Panic Selling: Dumping stocks during market dips locks in losses.
2. Chasing Performance: Buying high after hot streaks leads to mistimed investments.
3. Poor Market Timing: Guessing market moves can be costly.
4. Misguided Asset Allocation: Unbalanced portfolios miss out on optimal growth.
5. High Fund Fees: Sky-high costs eat away at returns over time.

While it’s not easy, the key is to not let human nature get the best of us. Disciplined, diversified, and strategic thinking could help you sidestep these pitfalls and maximize your wealth over time.