One of the steps I’m taking to mitigate my debt is investing. Currently, I have several mutual funds with American Funds.
However, this summer, I decided to graduate from investing into mutual funds to individual stocks. I did some research. I read the financial magazines and watched CNBC. They all seemed to be in agreement that gold was the thing to invest in.
So, being the investment novice that I was and still am, I opened up an E-trade account, and invested $500 in gold.
Well, as soon as I bought my shares, gold started plunging in value. I didn’t sell, though. I thought if I toughed it out, then maybe it would rebound soon. It never did. I sold after three months and took a hit of $100.
Lesson: It’s good to research when investing. But if commentators say a stock is hot, it’s probably too late to invest in it. Just stick to fundamentals when investing.