When learning any skill, it is best to start young. Investing is no different. Mistakes are common when learning something new, but when dealing with money, there can be serious consequences.
Investors who start young generally have the time to take on risks and recover from their money-losing errors, but avoiding the following common mistakes can help improve the odds of success.
No. 1: Trading too frequently
It is easy to find yourself trading too often when you are just starting. At first, you would buy into a handful of exciting companies … only to discover some other interesting opportunities, so you sell some shares of the first batch of companies and buy into some others. Not only is this a good way to rack up trading fees, but it may also cost you more in taxes.
But beyond that, you need to give your investments time to grow — ideally,...