Investing money you aren’t using immediately can be an excellent means of growing wealth. But one thing you don’t want to do as an investor is fall victim to these common traps.
1. Trying to time the market
If you manage to magically scoop up shares of a given stock when they’re trading at their lowest point, you might enjoy massive gains if you then manage to sell those shares at a high. But while buying low and selling high might sound like an easy thing to do, it’s actually not so simple.
If you keep waiting for a given stock’s share price to fall, you might miss out on an opportunity to buy it at a good price — even if it’s not the best price. That’s why a better approach to take is dollar-cost averaging. With this strategy, you commit to a preset investing schedule ahead of time and stick to it, no matter what market conditions look like.
If you follow this strategy, you’re likely to land in a situation where you sometimes pay more for shares of a given stock and sometimes pay less. But over time, you’re likely to end up with a lower cost per share than if you were to try timing the market.
2. Not diversifying your portfolio
There may be a certain sector of the market you know a lot about, like tech stocks. And you may have high hopes for that particular sector. But tempting as it may be to load your portfolio with stocks from a single market sector, doing so could mean limiting your opportunity to grow wealth and setting yourself up for major losses during periods of stock market volatility.
A better bet? Aim to maintain a mix of stocks across different market sectors. And if you don’t want to do that legwork, take the easy way out by investing in broad market ETFs, or exchange-traded funds. ETFs take the research and guesswork out of investing, and they’re an easy way to diversify without stress.
3. Investing in businesses you don’t understand
Some businesses may get more press than others. But if you don’t understand how those businesses work, you shouldn’t put your money into them.
As a general rule, you should only invest in companies whose business models and finances make sense to you. But it’s not just individual businesses you need to be careful with. You may want to stay away from broader investing opportunities if you just don’t understand them.
Take cryptocurrency, for example. Even though it’s been around for a while, a lot of people still really don’t understand it. And if that’s your situation, you shouldn’t put money into it. Instead, you should choose an investment whose risks and upside you have a better handle on.
It’s a great thing to invest your money — but you’ll want to do so carefully. These mistakes could really derail you on the road to growing wealth, so do your best to steer clear of them at all costs.
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· Alter Ego Salon & Day Spa to hold grand opening on May 22 at 500 Broad Street in Emmaus
· Sephora at Kohl’s to open at Whitehall Kohl’s
· Juliette Bridals by Ivana has relocated to 161 Glenworth Rd., Pottsville and is having a “relocation celebration” on May 19 at noon.
· Iqor has opened a new 30,000 square-foot call center in Allentown
· Life Advance Fitness at 436 State Ave. in Emmaus opens on May 11
· Grocery Outlet Bargain Market is open at 561 S. Broad Street in Lansdale, in the former Super Foodtown location.
· The Caribbean Grill will hold its grand opening on May 10, 5:30-7:30 p.m. at 1800 Sullivan Trail in Forks Township.
· A new mafia-themed bar named Capo & Co. Keg and Cork Kitchen is hiring staff in Emmaus. The restaurant is at 1375 Chestnut St. and will feature a self-tap wine bar.
· Terrain on the Parkway, at 1625 Lehigh Parkway East in Allentown is open and renting apartments ranging from studio to three-bedroom size.
· Sports and Social opened April 28 in Allentown. The sports bar and restaurant at 645 Hamilton St. is part of a national chain.
· McCall Collective Brewing plans a May opening for its second location at 7743 Hamilton Blvd. in the Breinigsville section of Upper Macungie Township. The original brewpub is in Allentown.
· Project Paw cat cafe and thrift shop opened April 30 at 452 Northampton St., Easton. The cats in the cafe will be available for adoption. The business supports The Center for Animal Health & Welfare in Williams Township.
· McDonald’s of Coopersburg is open at 6690 Short Drive, Upper Saucon Township, just off Route 309
· Oley Valley Inn in Oley Township is coming back as The Riedenau House, a farm-to-table restaurant. It will serve a German menu.
· Margaritaville resort, a Jimmy Buffett-inspired resort is coming to Monroe County. Construction in Tobyhanna and Pocono townships may begin next year, with an opening in 2024 at the site of the old Pocono Manor.
· La Dolce Casa, at 16 W. Broad St. on Tamaqua’s main thoroughfare, has added La Dolce Casa Bakery and Italian Market just three doors away at 32 W. Broad St. in the former Bittner’s General Store.
· Rutter’s opens 3rd location in Berks at Route 222 and Long Lane in Maxatawny Township, north of Kutztown.
· Berks Nature opened The Rookery. The Rookery is in Angelica Creek Park, on top of the existing Nature Place structure.
· New Santiago’s Restaurant at 125 S. Third St. in Coopersburg has reopened after about a year off.
· Obsidian Tattoo & Piercing Parlor of Bethlehem has expanded to Emmaus. The 173 Main St. location is open now.
· Ocean State Job Lot, a Rhode Island-based discount store, will open at the former site of the Kmart at Shillington Plaza in Cumru Township.
· Elpedio’s Ristorante will open May 1 at the site of the Seipsville Inn in Palmer Township.
· King Wing has opened at 129 E. Third St. in south Bethlehem, serving buffalo wings, along with sandwiches.
· Royal Farms convenience store and gas station is headed to the site of the Brass Rail in Allentown on Lehigh Street.
· 3 Men & A Bagel is back open after a brief closing for surgery for the baker. The shop is located at 3350 Schoenersville Road, Bethlehem.
· Wert’s Cafe is back after a brief closing following the death of owner Greg Wert.
· Vinyl Press Signs & Graphics has moved to 15 S. Second St. in Emmaus. A grand opening will be held May 5.
· Juliette Bridals by Ivana will hold a ribbon cutting May 19 at 161 Genworth Road, Pottsville.
· JPMorgan Chase & Co., the biggest bank in the U.S., is coming to downtown Allentown.
· The Easton Farmers’ Market will open May 7 at Scott Park along Larry Holmes Drive.