408 Introduction to The Plight of the Fickle Investor
Do you find yourself buying and selling at the wrong times? Or trading in a panic or using past performance to guide future actions? If you do, then you're not alone. But these are habits you should unlearn if you want to get better at investing.
What you will learn
- History Repeats Itself
- The Lessons of Fickle Mutual Fund Investors
What do you know?
Introduction to The Plight of the Fickle Investor
In investing, three truths are held to be self-evident:
- Investors should buy low and sell high.
- Investors should not be propelled by panic.
- Investors should not assume past performance guarantees future results.
Or at least that's what everybody says. What fund investors actually do is another matter entirely. They are often fickle, buying funds that have done well (or buying high) and selling in a panic when they stall (that is, selling low). In doing so, investors sabotage their own results. Here's what not to do.
