Avoid these Common Pitfalls When Investing in Stocks

Investing in the stock market can grow wealth, but understanding how it works and managing expectations is crucial to avoid losing money. Some investors mistakenly try to time the market, but market swings make this nearly impossible. Studies show that market timing tends to yield worse results than simply holding onto investments. Time in the market is key for compounding returns. Investing in a stock just because it’s popular may not be profitable in the long run. Diversification across different industries is important to reduce risk in your portfolio.

Read more at Yahoo Finance: 3 Dangerous Assumptions You Should Not Make When Investing in the Stock Market