6 Deadly Investing Mistakes
Comments on article by William Lynott found at bankrate.com
Source: http://www.bankrate.com/brm/news/investing/20080822_6_investing_mistakes_a1.asp
Given that this article is coming from Bankrate.com I take a lot of things in there with a grain of salt. “Bill, I want you to create a piece called 6 deadly investment mistakes…yea yea, I’m likin’ the sound of that..”
Its definitely skewed like so many things on the Internet, including blog posts but it drew me in nonetheless.
Under mistake #1, I completely agree with Bill here but I always get a laugh from comments like that from Lisa Feathergill. She sounds like a typical stockbroker, "Remember, you haven't lost money until you actually sell the security. I know a guy who followed this advice and watched his million dollars in stock turn into zero dollars in a very short amount of time. Ouch!!
I agree with Mistake #3 that savvy investors make more money during downturns in the economy, however I’m having trouble with his stock pushing again. In my humble opinion, unless you are lucky, stocks wont’ make you rich Bill. Any comments on this?
I wholeheartedly agree with Mistake #6, Abandoning your investment strategy. Bill’s right. Whatever you decide to invest in, stocks, bonds, real estate, gold or silver…stick to the plan.
I think the worst thing any investor can do is react to the whims of the media about the investment environment, from wherever you are looking. Bill wrote, and I agree, “If the headlines are full of it and everyone else is doing it, you're probably too late.”
Does anyone have any other comments or thoughts on these 6 deadly investing mistakes? I’d love to hear from you.
Wednesday, September 10, 2008
6 Deadly Investing Mistakes
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There are three important things to know about any bond before you buy it: the par value, the coupon rate, and the maturity date. Knowing these three items (and a few other odds and ends depending on what kind of bond you are buying) allows you to analyze the bond and compare it to other potential investments.. Therefore any type of bond not suit you if you want to invest in bonds.
ReplyDeleteI think all of these "mistakes" are mistakes made by gamblers..not "investors."
ReplyDeleteThat said, and I can't remember what the name of the book was.. but it is a pretty well know fact, that over time, any "investor/gambler" that can beat the pace of inflation, is doing pretty good... Anyway, the book I read several years ago while at University, basically stated that daytrading, dollar cost averaging, mutual funds, buying stocks at random (even though you think you did your dd), etc.. all end up in about the same place... the world of average.
To really "beat the street" one needs to focus less on what other companies are doing, and create their own company.
Think about it, it you put $100k into a MF, and wait... what value are you creating in the world??? You are doing nothing but wasting time, and hoping and praying that the govt and the fed and the pres will continue to keep things afloat... right?
But, what if you put that $100k into your own business?? A: you could lose it... or B: you could create value for people and become fabulosly wealthy..
So, it' the fear of loss that keeps most "investors" from starting their own business... but in the scheme of things, if you are putting your $100k into a MF, you are not receiving any value from it anyway, so how is that different than losing it anyway?
I say as Jeffer's says... Feel the Fear, and Do It Anyway..
Lose the fear of loss, and make your mark in the world!!
Good luck.