Quote:
Originally Posted by cbush
4. Buy low-sell high. It sounds simple but folks don't do it. They wait until they have a sure thing (market is high) before jumping in. I think the market is still undervalued.
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So true, I know many investors who barfed up their equity holdings that final, ugly week in early March and have missed this entire move off the low by sitting in cash. People are their own worst enemy when it comes to investing and as I say to my wife almost daily, people always do the opposite of what they should do when it comes to investing. Unless you are living and breathing the markets daily most investors should simply do the following things:
1. spend less than you earn and put the difference into sensible investments (equity tilted portfolio and depending on your age some fixed income; use ETFs for low fees and tax efficiency, buy your investments through a dirt cheap broker like Interactive Brokers).
2. max any retirement plans
3. ignore the daily market noise
4. ignore all stock tips and financial media (including Cramer)
Simply doing these things will put you far ahead of 95% of the investing public.