New to Investing? Don't Fall Into These 5 Traps

Investing in stocks is a great way to grow wealth, especially if you assemble a solid portfolio and leave it invested for many years. But if you're new to investing, it's easy to fall victim to certain pitfalls that could set you back financially. Here are five you should make every effort to avoid.

You never know when an unplanned bill or layoff might be in your future. And so you need money in the bank to allow for that possibility -- enough to cover a good three to six months of essential living expenses.

It's important to have a solid emergency fund before you start investing. If you don't have money in the bank and stock values tumble, you may have no choice but to liquidate investments at a loss when a need for money arises.

Source Fool.com