Comments on: Money Mistake Monday – The Learn Before You Invest Syndrome. http://www.mytwodollars.com/2008/01/28/money-mistake-monday-the-learn-before-you-invest-syndrome/ A place to discuss money...for the rest of us. Fri, 10 Feb 2012 05:21:23 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Power of Trying Something New - Personal Finance Review » Money Smart Lifehttp://www.mytwodollars.com/2008/01/28/money-mistake-monday-the-learn-before-you-invest-syndrome/#comment-24720 Power of Trying Something New - Personal Finance Review » Money Smart Life Sun, 03 Feb 2008 21:20:29 +0000 http://www.mytwodollars.com/2008/01/28/money-mistake-monday-the-learn-before-you-invest-syndrome/#comment-24720 [...] -Money Mistake Monday - The Learn Before You Invest Syndrome. @ My Two Dollars [...] [...] -Money Mistake Monday – The Learn Before You Invest Syndrome. @ My Two Dollars [...]

]]> By: January Rounduphttp://www.mytwodollars.com/2008/01/28/money-mistake-monday-the-learn-before-you-invest-syndrome/#comment-24702 January Roundup Sat, 02 Feb 2008 18:27:38 +0000 http://www.mytwodollars.com/2008/01/28/money-mistake-monday-the-learn-before-you-invest-syndrome/#comment-24702 [...] Two Dollars - Money Mistake Monday - The Learn Before You Invest Syndrome. I’ve been guilty of breaking this rule [...] [...] Two Dollars – Money Mistake Monday – The Learn Before You Invest Syndrome. I’ve been guilty of breaking this rule [...]

]]> By: Weekly Dividend Investing Roundup - February 1, 2008 » The Dividend Guy Bloghttp://www.mytwodollars.com/2008/01/28/money-mistake-monday-the-learn-before-you-invest-syndrome/#comment-24669 Weekly Dividend Investing Roundup - February 1, 2008 » The Dividend Guy Blog Fri, 01 Feb 2008 14:13:37 +0000 http://www.mytwodollars.com/2008/01/28/money-mistake-monday-the-learn-before-you-invest-syndrome/#comment-24669 [...] have to admit, that when I first started investing I made a lot of mistakes. I still do. My Two Dollars provided us with his take on investing without educating yourself. My only comment for new [...] [...] have to admit, that when I first started investing I made a lot of mistakes. I still do. My Two Dollars provided us with his take on investing without educating yourself. My only comment for new [...]

]]> By: Duncanhttp://www.mytwodollars.com/2008/01/28/money-mistake-monday-the-learn-before-you-invest-syndrome/#comment-24610 Duncan Wed, 30 Jan 2008 06:10:37 +0000 http://www.mytwodollars.com/2008/01/28/money-mistake-monday-the-learn-before-you-invest-syndrome/#comment-24610 Hi there, Thanks for using my photo! If you could, please change link to my blog instead of my flickr account: http://thelastminuteblog.com as per: http://www.flickr.com/people/thelastminute Thanks! Hi there,

Thanks for using my photo! If you could, please change link to my blog instead of my flickr account:
http://thelastminuteblog.com

as per:
http://www.flickr.com/people/thelastminute

Thanks!

]]> By: Davidhttp://www.mytwodollars.com/2008/01/28/money-mistake-monday-the-learn-before-you-invest-syndrome/#comment-24568 David Tue, 29 Jan 2008 01:15:27 +0000 http://www.mytwodollars.com/2008/01/28/money-mistake-monday-the-learn-before-you-invest-syndrome/#comment-24568 The 90's were a rough time, that's for sure. I just hope people learned from it! The 90′s were a rough time, that’s for sure. I just hope people learned from it!

]]> By: Deamiter @ handlingfinances.comhttp://www.mytwodollars.com/2008/01/28/money-mistake-monday-the-learn-before-you-invest-syndrome/#comment-24567 Deamiter @ handlingfinances.com Tue, 29 Jan 2008 01:11:20 +0000 http://www.mytwodollars.com/2008/01/28/money-mistake-monday-the-learn-before-you-invest-syndrome/#comment-24567 Yeah, the late 90s was a horrible time to get into the stock market. Unfortunately, as the market was peaking, the media got really excited about it and a lot of people jumped in on the hype just before the whole thing fell apart. I've made money in the past few years investing in individual stocks, but it takes hours of research each week as well as good sense and a bit of luck. Since you'll never know as much as the professionals, you also need a long-term outlook so you can take advantage of growing companies rather than expecting hype to push an inflated stock even further. Finally, you need to start and learn with money you aren't afraid to lose -- otherwise the first time you try to ride losses, you'll panic and sell just before the stock recovers! I have been successful in the past, but I see a lot of wisdom in the idea of an efficient market where I have less information than most of the professionals... so I play with 10% of my investments and let the rest sit in more diversified funds. Yeah, the late 90s was a horrible time to get into the stock market. Unfortunately, as the market was peaking, the media got really excited about it and a lot of people jumped in on the hype just before the whole thing fell apart.

I’ve made money in the past few years investing in individual stocks, but it takes hours of research each week as well as good sense and a bit of luck. Since you’ll never know as much as the professionals, you also need a long-term outlook so you can take advantage of growing companies rather than expecting hype to push an inflated stock even further. Finally, you need to start and learn with money you aren’t afraid to lose — otherwise the first time you try to ride losses, you’ll panic and sell just before the stock recovers!

I have been successful in the past, but I see a lot of wisdom in the idea of an efficient market where I have less information than most of the professionals… so I play with 10% of my investments and let the rest sit in more diversified funds.

]]> By: Davidhttp://www.mytwodollars.com/2008/01/28/money-mistake-monday-the-learn-before-you-invest-syndrome/#comment-24559 David Mon, 28 Jan 2008 21:17:34 +0000 http://www.mytwodollars.com/2008/01/28/money-mistake-monday-the-learn-before-you-invest-syndrome/#comment-24559 Thanks Ron, appreciate your comment and input! Thanks Ron, appreciate your comment and input!

]]> By: Ron@TheWisdomJournalhttp://www.mytwodollars.com/2008/01/28/money-mistake-monday-the-learn-before-you-invest-syndrome/#comment-24558 Ron@TheWisdomJournal Mon, 28 Jan 2008 19:45:40 +0000 http://www.mytwodollars.com/2008/01/28/money-mistake-monday-the-learn-before-you-invest-syndrome/#comment-24558 You hit the nail on the head with your last point. Some PF writers insist that no one should ever invest in individual stocks and ONLY invest in broad based index funds. That just simply isn't true. Sure, if you only want to invest passively and never look at your holdings, a broad based fund probably IS the way to go. But if you have an understanding of the industry and its players and if you have the time, willingness, and interest to invest in individual stocks, I say by all means, go for it. But like you said, Don't Chase Stocks. I'll add, Set Up A Stop Loss. You hit the nail on the head with your last point. Some PF writers insist that no one should ever invest in individual stocks and ONLY invest in broad based index funds. That just simply isn’t true. Sure, if you only want to invest passively and never look at your holdings, a broad based fund probably IS the way to go. But if you have an understanding of the industry and its players and if you have the time, willingness, and interest to invest in individual stocks, I say by all means, go for it.

But like you said, Don’t Chase Stocks. I’ll add, Set Up A Stop Loss.

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