Of the mistakes made by investors, seven of them are repeat offenses. In fact, investors have been making these same mistakes since the dawn of modern markets, and will likely be repeating them for years to come. You can significantly boost your chances of investment success by becoming aware of these typical errors and taking steps to avoid them. (To read about market histories, see The Stock Market: A Look Back, The Bond Market: A Look Back and The Money Market: A Look Back.) TUTORIAL: Investing 101 For Beginner Investors ADVERTISING 1. No Plan As the old saying goes, if you don't know where you're going, any road will take you there. Solution? Read more: 7 Common Investor Mistakes | Investopedia http://www.investopedia.com/articles/stocks/07/mistakes.asp#ixzz47jjzebfS Follow us: Investopedia on Facebook Stocks are an equity investment that represents part ownership in a corporation and entitles you to part of that corporation's earnings and assets. Common stock gives shareholders voting rights but no guarantee of dividend payments. Preferred stocks provides no voting rights but usually guarantees a dividend payment. In the past, shareholders received a paper stock certificate -- called a security -- verifying the number of shares they owned. Today, share ownership is usually recorded electronically, and the shares are held in street name by your brokerage firm. Investing in stocks can be tricky business. In fact, it's best to treat all of your investment pursuits as a business. Heck, that's what Benjamin Graham (Warren Buffett's stock market mentor) recommended. Before you buy your first stock, you should master the basics of stock investing. This won't make you a great investor overnight, but only when you understand the fundamentals of investing can you learn how to invest in stocks with confidence.
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