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10 Mistakes Every Investor Makes and How to Avoid Them

10 Mistakes Every Investor Makes & How to Avoid Them
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Mistake #10 – Timing the Market
Because the stock market is a result of company earnings and
forecasts, investor psychology, and the institutional house’s ability to
move markets in a particular direction with enormous positions, the
stock market cannot be predicted accurately. You may be lucky and
make an accurate prediction once in a while, but you can also hit
black jack at any table in Las Vegas.
Trying to time the market is a loser’s game, and for the long term
investor it should be an irrelevant concept. As an investor your focus
should be to regularly invest in a well diversified portfolio. By
regularly investing you take advantage of the market fluctuations by
buying more shares when the market goes down, and being a part of
the winning crowd when it reverses. This is known as, “dollar cost
averaging.”
Market timing does not have a place in the wealth equation. The only
thing worth timing is to be in the stock market, because over time
history proves that it will only go up. That’s the only way to outsmart
the market.
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