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Avoid excessive trading and turnover from "summary" of One Up On Wall Street by Peter Lynch,John Rothchild
The biggest mistake investors make is excessive trading. They can't resist following the daily ups and downs of the market. They're like addicts, checking their stocks at all hours of the day. They get a rush from buying and selling, even though it's usually counterproductive. The problem with excessive trading is that it leads to high turnover. This means constantly buying and selling stocks, which racks up commissions and taxes. In the end, it eats away at your returns. The more you trade, the more you lose. It's a vicious cycle that many investors fall into without even realizing it. I've seen too many people get caught up in the excitement of trading. They think they can outsmart the market by constantly buying and selling. But the truth is, no one can predict the market's movements with certainty. It's better to take a long-term approach and focus on the fundamentals of the companies you invest in. When you invest for the long term, you give your investments time to grow. You don't have to worry about every little blip in the market. You can ride out the ups and downs without panicking. This approach has served me well over the years, and I believe it's the key to successful investing. So, resist the urge to trade excessively. Focus on the long term and stick to your investment strategy. Don't let the daily fluctuations of the market distract you. Remember, investing is a marathon, not a sprint. Stay patient and disciplined, and you'll be well on your way to achieving your financial goals.
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