1. It's our time in the market not timing the market Many investors try to time the stock market's peaks and valleys. Timing the market has proven difficult over long periods of time. An investor that dollar cost averages ( adding to investments on a monthly basis ) has a much better record of returns over long periods of time.
2. Being under diversified
Don't put all our eggs in one basket. We've all heard that before. This one is true however. Allowing too much to accumulate in company stock or even one type of mutual fund could be a mistake if that company or market segment reports bad news. Review investments over time; don't allow more than ten percent of your portfolio to accumulate in one stock or mutual fund.
3. Not watching expenses
Reducing the cost of investing is another way to save. Find a broker with no minimum balance or inactivity fees. There are many no load mutual funds to pick from, and there is no reason to pay high fees to invest. See you next time, Finwiz.
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