In the stock market, as in life, nothing is certain. The vast opportunities for creating wealth by investing come with plenty of risks, such as the 2008-2009 stock market collapse and plenty of sharp contractions since.
Mistakes? Investor, behold thyself. Here are the most common investing screw-ups, along with advice on how to avoid them.
1. freaking out in market drops
2. getting swept up in market euphoria
3. trading too frequently
4. putting all your eggs in one basket
5. treating your home as an investment
6. failing to rebalance your portfolio regularly
7. borrowing against stocks
8. miscalculating a fund's tax basis