4 Wealth-Destroying Mistakes New Investors Make
Ready to start investing or to expand your trading beyond your 401(k)? Putting your money into the stock market is the best way to build wealth over the long term, but it does come with a fair amount of risk. The good news is, you can mitigate much of that risk by steering clear of a few common investing blunders. Here are four wealth-destroying moves you should avoid at all costs.
High on the list of novice investor mistakes is investing cash you can't afford to lose. Here's why that's problematic. Fear of loss creates desperation, and desperation pushes you to make poor trading decisions. Desperation might urge you to sell after a market crash to cap your losses, or to buy when share prices are rising to get in on the action. Follow both of those urges and you end up selling low and buying high -- and that's no way to make money. Too much desperation might even convince you to bet big on a risky position, in hopes of getting a quick payoff. And that's not really investing; it's gambling.
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Source Fool.com
