Investing might seem intimidating, and if you’ve heard of any of these 20 rookie mistakes happening, you have reason to be wary. Go Banking Rates’ blog asked myself and 19 other investors what the most common newbie mistakes are and how to avoid them. What I’ve noticed a lot of is lack of patience. A lot of new investors have long-reaching goals, and imagine that right after they purchase a fund, the value will go up.
Expecting a return too early can be a big mistake and turn you off of investing. However, other mistakes include ignoring fees and taking your 401(k) at face value. Hidden fees exist, and you don’t want a nasty surprise down the road. Likewise, your 401(k) isn’t on autopilot. Look at any options you might have and make sure you’re optimizing this retirement account.
Checking stocks daily is also a common but poor move. Stock investing is a slow game, and driving yourself crazy with an influx of numbers can make the process painstaking. Other newbies rely too much on recommendations, especially from non-professionals. There’s no secret to hacking the system.