Not A Stock Wizard? Avoid These Investing Mistakes, Part 6 Read about the common mistakes people make when dealing with stocks.
Where do you want to go today . . . and tomorrow? If BillGates hadn't known where he wanted to go, he probably wouldhave ended up somewhere else. The same goes for your portfolio. Ifyou're saving for a goal that's five, 10 or 20 years away,your reactions to the market's fluctuations will likely bedifferent from those of someone whose focus is on speculation andshort-term gains. If the lofty levels of stocks have you spooked,consider dollar-cost averaging into investments you'd like toown. By making smaller purchases on a consistent schedule, youcould be in a better position to take advantage of the market'sfluctuations without a lot of headaches.
Know thyself. Many people don't know their risktolerance. Ask yourself how you'd feel if you invested in astock and two weeks later, only half of your investment was left.If you get sick just thinking about it, then maybe the stock marketisn't for you-at least when it comes to investment fads, hottips and initial public offerings. If you can't afford to losesome money, consider other investments.