From The Motley Fool · Bram Berkowitz · · 1m
Beginner Investors' Stock Market Mistake
Selling during market volatility could cost beginner investors thousands.
In brief
Selling during market volatility could cost beginner investors thousands. Beginner investors often sell stocks during market volatility, risking thousands in losses. Originally reported by The Motley Fool.
Market Volatility Since Pandemic
The stock market has felt incredibly volatile since the pandemic, with periods of sudden drops and quick recoveries.
Beginner Investors' Biggest Mistake
Selling during market volatility can cost beginner investors thousands of dollars.
S&P 500 Volatility Study
Morningstar found the S&P 500 had 15% annualized volatility from January through April 10, matching 100-year averages.
Why Volatility Costs Money
Reactive selling during short-term market swings often leads to losses because the market recovers quickly.
Long-Term Market Performance
The S&P 500 has averaged 10% annual gains since 1957, showing long-term resilience despite short-term volatility.
When to Sell During Volatility
Selling a stock after a fundamental change may be justified, but market-wide drops usually require patience.
What matters most
Beginner investors often sell stocks during market volatility, risking thousands in losses.
