Are You a New Investor in 2026? Here’s 1 Costly Mistake to Avoid.
In the past 30 years, the S&P 500 (^GSPC -0.11%) posted an annualized total return of 10.8%. In a single year, this doesn’t seem like much. But over that three-decade stretch, your starting capital would’ve grown 204-fold.
This makes investing in the stock market look like a no-brainer decision. But if you’re a beginner investor in 2026, it’s important to avoid this costly mistake.
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Every investor knows the buy-low, sell-high strategy. This looks like a smart move. And it plays to human nature, which is to take action to capture the market’s positive days and avoid the losing ones.
However, there’s plenty of research that shows this is a losing proposition. Trading too frequently to time the market harms one’s portfolio, as it’s impossible to be consistently successful at jumping in and out of positions.
Today’s Change
(-0.11%) -8.35
Index Level
7,399.95
Key Data Points
Day’s Range
7,397.57 – 7,460.98
52wk Range
6,212.69 – 7,620.90
Had you only missed the stock market’s 60 best days during the 30-year stretch from 1995 to 2025, your total return during that time would’ve been negative. This clearly depicts how critical it is to simply stay invested through the ups and downs.
The best investors don’t try to run away from volatility. They understand that it’s the price you must pay if you want to build long-term wealth in the stock market. Remember this as you go on your investing journey in 2026.
Neil Patel has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
