Things people say that you should ignore: "Buy low, sell high." No myth is more pervasive among amateur investors, encouraging them to load up on shares that have lost some of their value. Stocks going to zero have to pass through all-time lows; those going through the roof must go through all-time highs. Why would you want to buy the losers and ditch the winners? "You can’t time the market." That old chestnut that keeps clients fully invested. Certainly it’s a fool’s errand to try to catch the market’s twists and turns. But that doesn’t mean you have to suspend judgment about overall valuations. "It’s a good time to invest in the market." Really? When was the last time you heard someone that’s going to make commission on a trade say that it was a bad time to invest? "To earn higher returns, you have to take more risk." Warren Buffett is obviously unaware of this one since he keeps investing in boring companies, in boring industries. As for risk, it often gets confused with volatili...
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