We all make mistakes. But making mistakes with your money can haunt you for a lifetime. Here are three of the most dangerous mistakes investors make – and how to avoid them.
Mistake #1: Holding on too long to winners
Selling a hot investment is difficult, but the price can’t go up forever. On a regular basis, sell some winners and reinvest the profits in other promising investments to diversify and keep your portfolio balanced.
Mistake #2: Waiting too long to sell losers
It’s painful to realize a loss, so you wait (and wait) for a losing investment to bounce back. Bad idea. Set a limit on how far a price can fall before you will sell and stick to it.
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Mistake #3: Trying to time the market
The stock market has gone up two out of every three years, on average, over the past century. Trying to outguess the bulls and the bears is futile. Instead, invest at regular intervals whether the market is up or down.
Check out more of the worst mistakes investors make with their money.
-
Elon Musk's $1 Trillion Pay Package Vote: What's at Stake for Tesla StockTesla shareholders are voting this week on a massive pay package for CEO Elon Musk. Here's what it means for the Mag 7 stock.
-
How to Read a Company's Balance Sheet Like a Stock ProKnowing how to read this financial statement can help you separate strong companies from struggling ones.
-
The Most Tax-Friendly States for Investing in 2025 (Hint: There Are Two)State Taxes Living in one of these places could lower your 2025 investment taxes — especially if you invest in real estate.
-
Bond Basics: Zero-Coupon Bondsinvesting These investments are attractive only to a select few. Find out if they're right for you.
-
Bond Basics: How to Reduce the Risksinvesting Bonds have risks you won't find in other types of investments. Find out how to spot risky bonds and how to avoid them.
-
What's the Difference Between a Bond's Price and Value?bonds Bonds are complex. Learning about how to trade them is as important as why to trade them.
-
Bond Basics: U.S. Agency Bondsinvesting These investments are close enough to government bonds in terms of safety, but make sure you're aware of the risks.
-
Bond Ratings and What They Meaninvesting Bond ratings measure the creditworthiness of your bond issuer. Understanding bond ratings can help you limit your risk and maximize your yield.
-
Bond Basics: U.S. Savings Bondsinvesting U.S. savings bonds are a tax-advantaged way to save for higher education.
-
Bond Basics: Treasuriesinvesting Understand the different types of U.S. treasuries and how they work.
