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Avoid excessive trading and unnecessary fees from "summary" of The Intelligent Investor by Benjamin Graham
One of the critical mistakes that many investors make is engaging in excessive trading and paying unnecessary fees. This can significantly erode the returns on your investments and hinder your long-term financial success. When you trade frequently, you not only incur transaction costs but also increase the likelihood of making poor investment decisions based on short-term market fluctuations. This can lead to a lack of discipline and a tendency to buy and sell based on emotions rather than sound investment principles. In addition to transaction costs, excessive trading can also trigger capital gains taxes, further reducing your overall returns. It is essential to remember that every dollar you pay in fees or taxes is a dollar that could have been working for you in the market. Furthermore, unnecessary fees can come in various forms, such as management fees, advisory fe...
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