If you’re new to stock investing, making mistakes along the way will invariably be part of your learning process. However, with a bit of know-how, you can avoid potentially costly blunders.
Here are three common stock investment mistakes you may make as a beginner:
1. Investing without having first saved for an emergency fund
It’s never a good idea to invest everything you have – otherwise, you’ll have to dip into your investments if unexpected expenses pop up. This is a bad idea for a couple of reasons:
- You may experience capital loss. Stock investing is an exercise in patience. You may have to wait months or years for the value of your stocks to go up. If you sell them off if they have gone down in value or before they have had the chance to mature, you’ll be losing money on your investment.
- You’ll have to pay the ...
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