Did you know that an estimated 95% of day traders lose money? Don’t be one of these people.
Instead, buying and holding a diversified set of stocks and bonds is how most working professionals build wealth over time. It might seem boring, but it works.
Index funds make this process easy, and it means investors won’t lose their shirts even if the stocks of several companies that are inside the index fund tank. Investing in a wide variety of stocks more evenly distributes risk.
Resist the temptation to overextend yourself by investing too much money because if the market does drop, or a recession hits the economy, you might feel the burden of having too much money invested in a down market.