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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 ...
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