Institutional investors or big investors can take risks as they have a lot of money and they have multiple assets and one of two failed investment will not make them hard. However, for people with small funds or small investors, it is not possible to take any chance. Therefore, they have to avoid mistakes at any cost. One of the most common mistake small investors make is investing all money and not having additional cash as a hedge against market risk. This will put them at the risk of losing everything in case investment goes wrong. Second major mistake is investing in just 1-2 assets and not diversifying investments. Investing in fewer assets increases risk.