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Five costly and common mistakes every new investor must avoid making

The Independent·Alex Sebastian·18 days ago
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Investing sensibly is one of the best things you can do to achieve financial security over the long term. It is valuable both on an individual level and for the economy as a whole. The government is well-aware of this and is now seeking to promote greater participation in investing across the population. When investing, there is no reward without some effort, and risk . It is the risk that puts some people off, and it is true that you can lose money if you make bad decisions. However, it is also true that it’s straightforward to cut your risk of losses down to very low levels if you avoid common pitfalls, leaving you to enjoy the long-term rewards investing brings. And if you do it inside an ISA, remember all returns are tax-free . Here are five key mistakes to avoid if you’re just starting out - and expert tips on steering clear. Avoid ‘FOMO’ – look for value FOMO, or fear of missing out, is arguably the easiest error to make in investing.…

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