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Kiplinger
Kiplinger
Business
Mark R. Hake, CFA

Investing Mistakes Beginners Make and How To Avoid Them

Yellow caution tape with word caution written in large black letters.

Investing mistakes are easily – and sometimes often – made by those just getting started in the stock market. Rookies might put too much money in one asset class such as cryptocurrency that they currently like or that is getting media attention. Or they might spread their money across too many asset types without really understanding what they are doing.

I often find that beginning investors want all the upside of the stock market and get upset when they see the market fall. Many times, they will pull the trigger too early and sell. They don't realize that markets will have dry spells and that some volatility is inherent in the investing process.

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