Comments on: Your Investments: Seven Common Mistakes to Avoid http://www.fivecentnickel.com/2010/03/12/your-investments-seven-common-mistakes-to-avoid/ personal finance tips, tricks, and commentary Mon, 13 Feb 2012 18:22:18 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: AdamP http://www.fivecentnickel.com/2010/03/12/your-investments-seven-common-mistakes-to-avoid/comment-page-1/#comment-148461 AdamP Thu, 25 Mar 2010 23:12:58 +0000 http://www.fivecentnickel.com/?p=4561#comment-148461 How do you distinguish between #4 and #7? i.e. if your investment goes down, do you follow #4 and hold, or follow #7 and sell? This sort of simplistic advice always seems pretty useless to me, but I think it's particularly amusing to see conflicting advice on the same list. How do you distinguish between #4 and #7? i.e. if your investment goes down, do you follow #4 and hold, or follow #7 and sell? This sort of simplistic advice always seems pretty useless to me, but I think it’s particularly amusing to see conflicting advice on the same list.

]]> By: daddy paul http://www.fivecentnickel.com/2010/03/12/your-investments-seven-common-mistakes-to-avoid/comment-page-1/#comment-145301 daddy paul Tue, 16 Mar 2010 02:05:51 +0000 http://www.fivecentnickel.com/?p=4561#comment-145301 You nailed it with this article. Most of the mistakes people make with investing are emotional. Jessie Livermoore realized this and hired a psychologist. You nailed it with this article. Most of the mistakes people make with investing are emotional. Jessie Livermoore realized this and hired a psychologist.

]]> By: The Biz of Life http://www.fivecentnickel.com/2010/03/12/your-investments-seven-common-mistakes-to-avoid/comment-page-1/#comment-145031 The Biz of Life Sun, 14 Mar 2010 21:35:09 +0000 http://www.fivecentnickel.com/?p=4561#comment-145031 #1 and #3 speak to me. Each investor has to ask themselves-- how much is enough.... and that will determine amount of risk they need to take. The higher the needed return the higher the risk. Then the tyranny of compounding costs.... I'm a passive investor so I aim for the lowest cost index funds to meet my asset allocation targets. I contribute regularly and rebalance periodically, and have very low investment turnover. Thus far this was worked well for me. #1 and #3 speak to me. Each investor has to ask themselves– how much is enough…. and that will determine amount of risk they need to take. The higher the needed return the higher the risk.

Then the tyranny of compounding costs…. I’m a passive investor so I aim for the lowest cost index funds to meet my asset allocation targets. I contribute regularly and rebalance periodically, and have very low investment turnover. Thus far this was worked well for me.

]]> By: LC http://www.fivecentnickel.com/2010/03/12/your-investments-seven-common-mistakes-to-avoid/comment-page-1/#comment-145021 LC Sun, 14 Mar 2010 17:23:09 +0000 http://www.fivecentnickel.com/?p=4561#comment-145021 #7, is a no brainer to say...not so easy to do. How can anyone know when it's reached it's peak? How do they know not to get out (or the inverse TO GET OUT) when necessary? It was pure luck I got mom out of GM. I would like to learn more, but get so many different opinions. I read Phil Town's 1st book. I couldn't figure out the system. I guess I am too dumb. It all seems a system of "guessing." #7, is a no brainer to say…not so easy to do. How can anyone know when it’s reached it’s peak? How do they know not to get out (or the inverse TO GET OUT) when necessary? It was pure luck I got mom out of GM. I would like to learn more, but get so many different opinions. I read Phil Town’s 1st book. I couldn’t figure out the system. I guess I am too dumb. It all seems a system of “guessing.”

]]> By: myfinancialobjectives http://www.fivecentnickel.com/2010/03/12/your-investments-seven-common-mistakes-to-avoid/comment-page-1/#comment-145011 myfinancialobjectives Sun, 14 Mar 2010 13:29:23 +0000 http://www.fivecentnickel.com/?p=4561#comment-145011 Great points. A lot of these things almost make up one rule I have read about many times over: Take your emotions out of investing. Many many books have advocated this as a way to make more SOUND decisions. After learning about this concept, I realize how hard it truly is not to be invested emotionally in my investments. (I'm speaking about investments such as stocks, money that if you lose, you can still pay rent and buy groceries. We all know that you should never put money in the stock market that you need to rely on.) Great points. A lot of these things almost make up one rule I have read about many times over:

Take your emotions out of investing.

Many many books have advocated this as a way to make more SOUND decisions. After learning about this concept, I realize how hard it truly is not to be invested emotionally in my investments. (I’m speaking about investments such as stocks, money that if you lose, you can still pay rent and buy groceries. We all know that you should never put money in the stock market that you need to rely on.)

]]> By: CB http://www.fivecentnickel.com/2010/03/12/your-investments-seven-common-mistakes-to-avoid/comment-page-1/#comment-144841 CB Sat, 13 Mar 2010 00:22:22 +0000 http://www.fivecentnickel.com/?p=4561#comment-144841 I'm studying Phil Town's books (Rule #1 and Payback) to learn how to pick good companies and buy them when the price is such that they are a bargain. I’m studying Phil Town’s books (Rule #1 and Payback) to learn how to pick good companies and buy them when the price is such that they are a bargain.

]]> By: John @ The Financial Ladder http://www.fivecentnickel.com/2010/03/12/your-investments-seven-common-mistakes-to-avoid/comment-page-1/#comment-144701 John @ The Financial Ladder Fri, 12 Mar 2010 16:37:53 +0000 http://www.fivecentnickel.com/?p=4561#comment-144701 I really have to work on 4 and 6... I really have to work on 4 and 6…

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