I found this article on Risk & Return (By Chuck Jaffe, MarketWatch) to be worth reading.
BOSTON (MarketWatch) — Some people are afraid of making a mistake by taking on risk, while others take risks that lead to mistakes.
Such behaviors are the focus of the new book “Investment Mistakes Even Smart Investors Make … and How to Avoid Them,” by Larry Swedroe of Buckingham Asset Management in St. Louis, who is one of the most thoughtful financial advisers.
No matter your feelings about the market — if you think the current run will continue or you expect a downturn – the mistake comes when you let those feelings override long-term strategy.
That’s what investors need to guard against now. And anyone who avoids the bulk of the book’s 77 different errors is likely to reach the end of their investing lifetime pretty happy with the results.
That said, no blueprint will help an investor avoid all of the potential and theoretical booby-traps. Moreover, even the best investors make mistakes; the key is to avoid the giant ones from which there is no recovery, and to avoid being bled to death by an endless series of small errors. Read the complete article here: