Investing in stock market and getting rich might seem difficult. Unfortunately yes, it is. What successful investing is to make few things right and few things wrong and as a result, earn more then you lose.
Investing in stock market has the best return in all investments for long term only if you avoid mistakes.
Listening to news, following the crows and try to be the in the safe place might be dangerous for you when it comes to stock market. Here are some mistakes you should avoid when it comes to become successful in stock market.
Trading too much
The more trading you do means the more fee you pay. And never forget that so many of the stocks are increasing in the long term. So if you are a panic seller and sell stocks when it decreases rather than being calm and patient you will lose money faster.
Not considering the fees
Every fund you make has an investment management fee in all of the platforms. So if you are investing $10,000, with a fee of %0,5 you will be paying $50 for the fees. If you are going to invest and make moves in the stock market, you need to learn about fees as soon as possible.
Not contributing to 401(k) or not contributing enough
If you employer matches on your contribution into 401(k), you are not being smart if you don’t take advantage of it. Employers match to the 401(k) account means free money for you. If you are earning $70,000 a year, you will be missing $3,500 free money a year by not contributing.