The recipe for successful investing sounds simple: have reasonably good timing over the long haul and avoid big mistakes. That’s helps professionals build a worthy track record. For average investors, it’s advisable to set the bar lower. Construct a balanced portfolio of low-cost mutual funds, make regular contributions; and stick with it until it’s time to retire.
The problem is that many investors think they’re better than that and can beat the stock market. Yet research shows that it’s a fool’s game.
Comments
For 95% of your assets you should invest periodically in a diversified portfolio of low cost funds and over time you'll do fine. If you want to use 5% of your portfolio to take a shot, try to time the market or chase performance and have a little fun, you will probably lose but you won't do irreparable harm to your net worth.