Missing Out on $2,300 Per $10,000 Invested: The Dangers of Overtrading in Stocks

Investors who trade too much, particularly during times of market volatility, risk missing out on significant returns. A study by Morningstar found that over the last decade, investors who traded frequently missed out on $2,300 per every $10,000 invested compared to the average return of US mutual funds and ETFs. This is especially damaging for closed-end funds (CEFs) yielding 8%+, which provide a higher income stream. Investors who sell in response to market fears may regret it, as the long-term prospects for stocks and stock-focused CEFs are positive.