Not A Stock Wizard? Avoid These Investing Mistakes, Part 6

Read about the common mistakes people make when dealing with stocks.
2 min read
Opinions expressed by Entrepreneur contributors are their own.

Where do you want to go today . . . and tomorrow? If Bill Gates hadn't known where he wanted to go, he probably would have ended up somewhere else. The same goes for your portfolio. If you're saving for a goal that's five, 10 or 20 years away, your reactions to the market's fluctuations will likely be different from those of someone whose focus is on speculation and short-term gains. If the lofty levels of stocks have you spooked, consider dollar-cost averaging into investments you'd like to own. By making smaller purchases on a consistent schedule, you could be in a better position to take advantage of the market's fluctuations without a lot of headaches.

Know thyself. Many people don't know their risk tolerance. Ask yourself how you'd feel if you invested in a stock and two weeks later, only half of your investment was left. If you get sick just thinking about it, then maybe the stock market isn't for you-at least when it comes to investment fads, hot tips and initial public offerings. If you can't afford to lose some money, consider other investments.

See our tips on Tuesday, December 26 through Tuesday, January 2 for parts 1 through 5 of this article, and Thursday, January 4 for part 7 of this article.

More from Entrepreneur
Our Franchise Advisors will guide you through the entire franchising process, for FREE!
  1. Book a one-on-one session with a Franchise Advisor
  2. Take a survey about your needs & goals
  3. Find your ideal franchise
  4. Learn about that franchise
  5. Meet the franchisor
  6. Receive the best business resources
Discover the franchise that’s right for you by answering some quick questions about
  • Which industry you’re interested in
  • Why you want to buy a franchise
  • What your financial needs are
  • Where you’re located
  • And more
Make sure you’re covered for physical injuries or property damage that occur at work by
  • Providing us with basic information about your business
  • Verifying details about your business with one of our specialists
  • Speaking with an agent who is specifically suited to insure your business

Latest on Entrepreneur