Limit the amount of trading in your portfolio to minimize costs from "summary" of John Bogle on Investing by John C. Bogle
To maximize returns on your investments, you must always be mindful of the costs associated with trading. These costs can quickly eat away at your earnings, reducing the overall value of your portfolio. Therefore, it is essential to limit the amount of trading in your portfolio as much as possible to minimize these expenses. When you buy and sell securities frequently, you incur various costs such as brokerage fees, commissions, and taxes. These costs may seem insignificant at first glance, but they can add up over time and significantly impact your investment returns. By reducing the number of trades you make, you can lower these costs and keep more of your money working for you. Moreover, frequent trading can also lead to higher levels of market volatility and increased risk in your por...
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