Starting out in the share market can feel straightforward: buy a few popular ASX shares like BHP Group Ltd (ASX: BHP) and CSL Ltd (ASX: CSL), wait, and watch wealth grow. In reality, many new investors fall into avoidable traps that can hurt long-term returns.

The good news is that most of these mistakes are behavioural rather than technical. Once identified, they are relatively easy to fix. Here are three of the most common investing mistakes beginners still make.

1. Trying to time the market

One of the biggest mistakes new investors in ASX shares make is trying to predict short-term market movements.

It often starts with good intentions. Investors see headlines about falling markets and decide to “wait for a better entry point.” Or they sell during periods of volatility, hoping to buy back later at a lower price.

The problem is that timing the market consistently is extremely difficult, even for professionals. Markets tend to recover quickly, and missing just a handful of strong trading days can significantly reduce long-term returns.

A more effective approach is time in the market rather than timing the market. Regular investing, regardless of short-term noise, helps smooth out volatility over time.

2. Chasing hot stocks and trends

Another common mistake is buying ASX shares purely because they have recently surged.

This often happens during periods of market excitement. A stock doubles, gets attention on social media, and suddenly feels “safe” because everyone is talking about it.

But strong recent performance does not guarantee future returns. In many cases, the best part of the rally has already passed by the time retail investors enter.

Chasing momentum can also lead to concentration risk, where portfolios become overly exposed to a small number of high-flying growth stocks.

A more balanced approach focuses on business quality, earnings growth, and valuation rather than recent price action.

3. Ignoring diversification

Many beginners also underestimate the importance of diversification.

It is common for new investors to hold just a few ASX shares, often in sectors such as banking, mining, or technology. While this can work in strong markets, it creates significant risk if one sector underperforms.

Diversification helps reduce the impact of any single company or industry on overall portfolio performance. It can be achieved across sectors, geographies, and even asset classes.

Exchange-traded funds (ETFs) are among the simplest ways to achieve diversification without having to pick individual stocks. Broad-market ETFs provide exposure to hundreds of companies in a single investment.

Foolish takeaway

Most investing mistakes do not come from complex errors. They come from behaviour: reacting emotionally, chasing performance, and underestimating risk.

By focusing on long-term investing, prioritising quality businesses, and maintaining diversification, beginners can avoid many of the pitfalls that derail returns early on.

Investing does not need to be complicated, but it does require discipline.

The post New to ASX shares? Avoid these 3 beginner mistakes appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Thursday
• Why I’d buy CSL and Zip shares before they recover
• Are Fortescue shares a strong buy or a value trap?
• Down 54%: What should I do with my CSL shares now?
• There are still some well-priced ASX dividend shares. Here’s where to look

Motley Fool contributor Marc Van Dinther has positions in BHP Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL. The Motley Fool Australia has recommended BHP Group and CSL. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

ASX tech names Xero Ltd (ASX: XRO) and WiseTech Global Ltd (ASX: WTC) exploded yesterday. 

WiseTech shares rose 14% yesterday while Xero shares rose 8%, making them two of the top performers on the ASX. 

Both companies were heavily impacted over the last year by AI takeover fears, with SaaS companies hit hard. 

Investors who have held these tech shares through 60%+ losses over the last 12 months will be hoping this marks the beginning of a long-term recovery. 

Why did Xero and WiseTech shares jump yesterday?

There are a couple of factors that might have impacted WiseTech shares yesterday. 

After falling 20% across Monday and Tuesday, it’s possible investors were simply buying the dip on this battered tech stock. 

However it may have also been influenced by the company’s response to recent media reports involving founder Richard White.

Meanwhile for Xero shares, investors are likely searching for value options after it once again received positive guidance from the team at Citi. 

What’s next?

These ASX tech shares now appear at a crossroads. 

The bull case for WiseTech shares is based on its position as a leading global logistics software provider. 

Its CargoWise platform benefits from high customer switching costs, recurring revenue, and long-term growth in global trade digitalisation. 

However, it appears right now the most important factor is regaining investor confidence after allegations against its CEO. 

Meanwhile, for Xero shares, the bull case centres around its strong market position in cloud accounting software, recurring subscription revenue, high customer retention, and continued growth opportunities in international markets. 

The bear case is that its valuation relies on sustained growth, making the stock vulnerable to slower subscriber growth, stronger competition, economic weakness, or delays in improving profitability.

What are experts saying about Xero and WiseTech shares?

Despite very real concerns, experts seem to believe both stocks are trading at attractive valuations.

WiseTech shares closed yesterday at $32.86 each. 

However, the team at Ord Minnett see this as a serious discount. 

The broker has a recent price target of $60 on WiseTech shares along with a retained buy recommendation. 

This indicates an upside potential of 82%. 

Meanwhile, for Xero shares, the team at Citi recently reaffirmed its buy rating and $113.60 price target on the cloud accounting platform provider’s shares.

Based on yesterday’s closing price of $70.31, this indicates 61% upside potential. 

The post Is the tech recovery finally here for Xero and Wisetech shares? appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• Top brokers name 3 ASX shares to buy now
• Why Benz Mining, Collins Foods, WiseTech, and Xero shares are shooting higher today
• US chip stocks were smashed overnight. So why are ASX tech shares rising?
• ASX tech giants bounce back from heavy losses

Motley Fool contributor Aaron Bell has positions in WiseTech Global. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended WiseTech Global and Xero. The Motley Fool Australia has positions in and has recommended WiseTech Global and Xero. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

ASX healthcare share Telix Pharmaceuticals Ltd (ASX: TLX) continued its strong run on Wednesday, rising 8% to $15.73.

Telix is now up 18% over the past month and 40% in 2026, although it remains down 36% over the past 12 months.

After a difficult year, investor sentiment has clearly improved. Here are three reasons the rally may still have further to run.

A powerful competitive moat

The ASX healthcare share operates in one of the most specialised areas of healthcare: radiopharmaceuticals.

These products combine radioactive isotopes with targeted therapies and diagnostics, helping doctors detect and treat diseases such as cancer with greater precision.

Importantly, this is not an industry that newcomers can easily enter.

Developing radiopharmaceuticals requires specialised expertise, manufacturing capabilities, regulatory approvals, and distribution networks that are expensive and difficult to replicate. Those barriers create a strong moat and help protect established players such as Telix from potential competitors.

As the market for precision medicine continues to expand, that competitive advantage could become increasingly valuable.

Momentum is building

The company has delivered a steady stream of positive developments in recent months.

In late February, Telix secured a key regulatory approval filing in Europe, marking an important step in expanding its commercial footprint beyond existing markets.

Momentum continued into April when the company announced that the US Food and Drug Administration had accepted its New Drug Application for TLX101-Px (Pixclara®). The acceptance represents a significant regulatory milestone and moves the product closer to potential commercialisation.

Telix also revealed a major collaboration with US biotechnology giant Regeneron Pharmaceuticals, strengthening confidence in its long-term growth strategy and pipeline potential.

Investors appear to be responding positively to the increasing number of catalysts emerging across the business.

Strong growth outlook

Telix’s financial performance continues to support the bullish investment case.

In April, the company reported first-quarter 2026 group revenue of US$230 million, representing an 11% increase on the previous quarter and a 23.7% rise compared to the prior corresponding period.

Management of the ASX healthcare share continues to guide to FY2026 revenue of US$950 million to US$970 million, supported by growth in its Precision Medicine business and contributions from its radiopharmacy operations.

The company also expects to invest between US$200 million and US$240 million in research and development this year.

That investment is helping advance multiple late-stage clinical programs and upcoming regulatory milestones across the pipeline.

Management also estimates its Precision Medicine and Therapeutics portfolio addresses a potential US$32 billion market opportunity in the United States alone, highlighting the scale of the growth runway ahead.

Analysts remain bullish

Market experts continue to see significant upside.

According to TradingView data, the majority of analysts covering the ASX healthcare share rate it as a strong buy. The most optimistic price target is $31.64, implying approximately 101% upside from current levels.

Morgans is also positive on the stock, with a $24.33 price target. That suggests upside of roughly 55%.

The broker recently noted that increasing consolidation across the healthcare sector could generate additional interest in Telix shares.

The post 3 reasons to buy this recovering ASX healthcare share appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• Here are the top 10 ASX 200 shares today
• 2 ASX growth shares that could double your money
• Here are the 10 most shorted ASX shares
• Healthcare shares led the ASX 200 last week. Is a sector comeback underway?

Motley Fool contributor Marc Van Dinther has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Telix Pharmaceuticals. The Motley Fool Australia has recommended Telix Pharmaceuticals. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.