Worth a reprint.....some good ones..tb
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9 (or 10)Mistakes Investors Make3 hours, 1 minutes ago | Post #3623421There's a short article in today's WSJ, "Nine Mistakes Investors Make." Those mistakes are:
Feeling certain. "There are no certainties in markets, only probabilities."
Extrapolating the recent past into the future. I think we've been warned about that one.
People selling financial products on commission. "Never ask a barber if you need a haircut." And "never ask a commissioned broker whether buying or selling a financial product is a good idea."
Feeling smarter after the market rises. Let's face it, everyone's been smarter for the last 5-6 years; that's not saying all that much. That isn't the test of a good investor; it's how you react when it hits the fan.
Feeling victimized after the market drops. The more an investor blames and complains when that happens, the less he's likely to learn from reality.
Impatience. "Investing requires, more than anything, patience and discipline. But it often attracts the impatient and impulsive."
Letting partisan views guide your investment decisions. Politics is driven by a two-year election cycle; markets are driven by long-term corporate profits. 'nuff said.
Worrying about things you can't control. I think that means the Fed, the price of oil and who will win the next election.
Refusing to change your mind when the facts change. Makes sense to me.
I'd maybe add a 10th to the list.
Changing your mind when the facts don't change.
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